China Bans Crypto... Again
Key Takeaways
- Crypto markets sell-off following regulatory news out of China, as the PBoC released a document laying out its intentions for stricter regulation and enforcement measures on crypto.
- This is not the first time China has “banned” crypto (and probably won’t be the last). Historical price movement post-ban is mixed.
- This news might serve as an alternate explanation for some of the outsized volume from Asian exchanges earlier in the week.
- $38,000 appears to be a critical support level based on on-chain data.
- A similar ban in 2017 preceded a run to all-time highs for BTC and ETH.
- The Bottom Line: We continue to monitor underlying market data for indications of sustained weakness, but for now we continue to buy into any selling as we maintain that a risk-on equities market could still result in a run to all-time highs for BTC and ETH.
Crypto markets once again suffered an overnight blow from regulatory news out of China, as the PBOC released a document laying out its intentions for stricter regulation and enforcement measures on crypto. The document stated that all fiat-to-crypto and crypto-to-crypto transactions are deemed illegal and that there will be a cross-functional effort among most major Chinese state authorities, including the PBoC, the Cyberspace...
Reports you haven't read
Over Friday and Saturday last week, Avalanche Labs put on their second edition of ‘Avalanche House’ in Brooklyn (with the first one in Berlin). The team attended Friday afternoon’s session as outlined below and shared the following notes and perspectives from the panelists. FIGURE: AVALANCHE HOUSE PANELIST SESSIONSTRATEGIC FUNDRAISING DURING A BEAR MARKET _Lydia Chiu (Ava Labs), Tom Schmidt (Dragonfly Capital), Nina Bambysheva (Forbes), Travis Scher (North Island Ventures)__ _The...
We are writing to update our clients on the events of this past weekend and highlight a few data points we will be keeping an eye on moving forward into the next couple of weeks. On Friday, December 3rd, over $2 billion in long positions across the global crypto market were liquidated, nearly $850 million of which were from BTC futures.Almost $500 billion in total market value was wiped from the...
As shown below, Bitcoin's forward performance is far stronger when it is trading above its 200D moving average: >200D, 6M forward return +193% <200D, 6M forward return +10% You get the picture, Bitcoin is a network effect/network value asset, and also apparently aided by price momentum. _STRATEGY: BUY BITCOIN OR BUY CRYPTO EQUITIES_ The associated action for Rule #3 is simple. - go long _WHY IS THIS...
But unlike past weekends, Bitcoin barely responded to these headlines (see below). In fact, Bitcoin is indeed flat/rising over the long weekend: - at 4pm ET Friday (5/28), Bitcoin was ~$34,900 - at 3:50pm ET Sunday (5/30) when FT story "broke" Bitcoin was ~$36,000 - as of this writing at 4:30pm ET (5/31), Bitcoin is $36,900, +$900 vs FT headline In other words, despite another set of "negative headlines" Bitcoin...
Articles Read 1/1
🎁 Unlock 1 extra article by joining our Community!
You’ve reached your limit of 1 free monthly articles. Please enter your email to unlock 1 more articles.
Already have an account? Sign In 317d40-6feafd-b795a9-db6ccd-fc0f0f
Already have an account? Sign In 317d40-6feafd-b795a9-db6ccd-fc0f0f
