This week, there was only one historical event – the adoption of bitcoin as a means of payment. On Wednesday, El Salvador became the first country to start using BTC as a national currency along with the US dollar. As a result, the entire Internet discussed a new peak in history for the fourth day. But not everyone is optimistic.
For example, payment companies will lose $400 million annually due to the recognition of BTC by El Salvador. More than 2.5 million Salvadorans live abroad, who annually transfer about $6 billion (23% of GDP) to their homeland. About 70% of the population of El Salvador receives transfers from abroad, on average, people send $195 a month. The Western Union commission for an online transfer of $100 from the USA to El Salvador is $5, for a transfer of $1000 – $19, and to send $100 in cash, you will have to pay $15. As a result, payment companies will lose about $400 million annually due to the recognition of BTC.
Also, the government wallet of El Salvador – CHIVO – has become the most popular mobile application in the country. Another interesting moment from the “Bitcoin day”: A Reddit user under the name thadiusb suggested to members of the r/Bitcoin community to purchase bitcoin in the amount of $30 on the day of recognition of the first cryptocurrency as an official means of payment in El Salvador. And this idea was supported by the CEO of MicroStrategy, Michael Saylor. At that time, the price of the currency was rising above $52k.
What is happening in the crypto market? Bears are desperately trying to reduce the price of bitcoin, but so far, without success. BTC is kept within the $43k range. The market says that a new sale has begun before the next jump. Analyst Willy Woo said that the current sell-off was mostly held in the derivatives market, which is typical for such falls. The total volume of liquidations on the futures market amounted to about $3.5 billion.
But according to most experts, there was no obvious catalyst for today’s decline in the crypto market. It is also worth noting that some top exchanges could not cope with the hype during the collapse — Coinbase, Kraken and Gemini all experienced problems with operations.
At that time, many altcoins shot to the moon. And Solana had a new ATH of $214. And also on CoinMarketCap, we highlighted the top 10 crypto, with the most growth this week.
Analyst Mike McGlone from Bloomberg predicted Bitcoin at $100k and Ethereum at $5k. By the way, earlier the founder of the Stock-to-Flow (S2) model PlanB predicted the September closing at least $43,000. So far, we are holding on.
And Standard Chartered is more bullish on Ether than Bitcoin with a $35,000 price prediction. British banking giant Standard Chartered released its first reports on crypto on Tuesday, highlighting a bullish view on both bitcoin (BTC) and ether (ETH), but a more optimistic stance on the latter. Ethereum is more like a “financial market” in which transactions like lending, insurance, and exchanges can operate, according to Standard Chartered’s global research team led by Geoffrey Kendrick. Bitcoin, on the other hand, is more akin to a “currency,” according to the team. Hence, given the broader use cases for Ethereum compared to Bitcoin, Standard Chartered believes that ETH’s total market capitalization will catch up to BTC’s over time.
The bank values bitcoin in the price range of $50,000-$175,000 over a longer term, and ether in a $26,000-$35,000 range. But for ether to get there, bitcoin would need to first trade at $175,000, said the team.
Bitcoin price analysis
At the beginning of the week, Bitcoin started at $50k. In the middle of the week, it fell to $43k, but very quickly recovered to $47k. At the time of writing, BTC is holding at $45k with a 24-hour trading volume of $37,046 376,917 dollars. The dominance of BTC in the market is 41.52%.
The bitcoin mining market continues to recover after half of the hash power was turned off during the Great Migration from China.
The 14-day median hash-rate has recovered to 128 EH/s, which is approximately 29% below the all-time-high, and reflects a 42% recovery from the July lows.
Ethereum price analysis
At the beginning of the week, the price was $3969, and at the time of writing, it’s $3300. Ethereum is down 7.12% in the last 24 hours. Meanwhile, The current market dominance of ETH is growing and is now 18.81%.
The rate of Ethereum burning has almost doubled in a month. As of September 10, 264.7 thousand digital coins worth $892 million were destroyed on the Ethereum network.
Meanwhile, after the London update on Ethereum, the average transaction cost almost reached the May maximum.
NFTs still account for the largest number of transactions, OpenSea is the first to use smart contracts.
Therefore, Vitalik Buterin wants to reduce fees on the Ethereum network by transferring NFT tokens to the ecosystem of second level (L2) solutions. As we wrote above, the NFT segment is now the main consumer of gas on the network of the second cryptocurrency, so the co-founder of Ethereum thought about transferring NFT to L2. But the problem is that existing L2s cannot interact with each other, and the NFT industry may be too large to work in one second-tier ecosystem. Back in early March of this year, Buterin presented a scheme for carrying out direct transactions between DeFi protocols that use L2 – the system for NFT transmission works in a similar way.
TOP CRYPTO NEWS
- What is happening in countries around the world? Last month, alaw on the use of BTC as an official currency came into force in El Salvador. The government has purchased 550 BTC for the newly created Bitcoin fund. Cuba has allowed the use of digital assets as a means of payment for legal entities. Ukraine has adopted a law on virtual assets, thereby legalizing cryptocurrencies. A bill on the regulation of cryptocurrencies has been submitted in Panama.
Another country is moving with small steps towards the study of cryptocurrencies and blockchain technology. The Bank of Russia will test a blockchain platform for issuing mortgages. The system was developed by the Fintech Association (AFT), founded by the Central Bank, by modifying the Ethereum protocol. It was certified by the FSB for compliance with the requirements of cryptographic information protection.
According to experts, the exchange of data between participants of mortgage transactions based on blockchain technology will reduce the time for processing transactions from several days to several hours or even minutes. But nevertheless, the Moscow authorities said they are not yet ready to accept cryptocurrencies at the state level.
- And the US, too, is not particularly happy about new assets. Once again, representative of the US government Elizabeth Warren said that digital services offer users credit products without guaranteeing them protection and stability, and the traditional financial system is based on the fulfillment of precisely these conditions. She also added that “Cryptocurrencies are the new shadow bank.”
- Everyone knows how they talk about BTC, but they have also been speaking positively about the second cryptocurrency for many months. DeFi specialist Pekka Kelkka said that in the future, Ethereum will become the largest player, changing the rules of the game in global business. It will become a “Global Computer” that will be larger than AWS, Azure and Google combined.
More significant changes will occur when Ethereum 2.0 is launched, after which the network will be used much more economically, commissions will drop significantly, and transaction speeds will increase.
- Salvadoran McDonald’s, Pizza Hut, Starbucks, as well as a number of other companies have started accepting Bitcoin. Initially, many were skeptical that large companies would be able to integrate payment solutions by the time the law came into force. But surprisingly, McDonald’s and several other companies already accept Bitcoin payments. So a Bitcoin Magazine journalist said that he was able to pay for breakfast with BTC: he was printed out a QR code that led to a page with an account on the Lightning Network.
- The US Securities and Exchange Commission (SEC) is going to sue Coinbase, as it is considering the launch of the Lend service, where investors would be able to receive 4% per annum on their investment-securities. According to the CEO of Coinbase, representatives of the exchange appealed to the SEC to notify about the launch of a new product. The regulator, in turn, classified the loans as unregistered securities. Brian Armstrong also noted that the representatives of the SEC refuse to justify their point of view.
- A European regulator: “Cryptocurrencies are an unstable, but innovative asset.” The European Securities and Markets Authority (ESMA) has published a 110-page report on financial trends and risks, where cryptocurrency is considered as a modern financial innovation technology, which is on a par with artificial intelligence and machine learning in terms of implementation. At the same time, the regulator described cryptocurrencies as a “threat to a stable financial environment” due to the non-ecological nature of mining, huge volatility, as well as the growing popularity of decentralized finance (DeFi) and stablecoins, which contribute to an increase in risk for all asset classes.
- The UK Post Office will provide an opportunity to buy Bitcoin through the EasyID application. This is amazing news, if only because in the UK, advertising for cryptocurrencies has been tightened. But it’s nice that now everyone can buy their first satoshi directly at the post office.
- Also LUMI Wallet news. Balancer is available for exchange and the KuCoin Token is available for purchases.
This is all the news, for now, we will continue to keep you informed of all the main events of the crypto market. This article is for informational purposes only and does not provide any financial advice. Stay tuned to our wallet, enjoy the usable interface and transaction security, and check back for updates and news on Twitter, Telegram, Facebook, TikTok and LinkedIn. Let’s learn the cryptocurrency market together step by step!