Bitcoin (BTC) Surges Nearly 6% in 12 Hours to Move Past $6,700

Avi Rosten

The price of bitcoin (BTC) has surged nearly 6% in under 12 hours - climbing to over $6,700 - as cryptocurrency markets across the board have shown signs of recovery.

minute_CryptoCompare_Index_BTC_USD_289_51537521048448.pngSource: CryptoCompare

Unclear What’s Behind Surge

The biggest BTC news for the last few weeks came last night as the US SEC announced it was once again postponing its decision on the highly-anticipated VanEck-SolidX Bitcoin ETF until December 29th.

This news however is likely unrelated to the recent surge. The last time the SEC made a similar postponement announcement on August 8th – bitcoin dropped over 7% in price - although it is possible that investors expecting an outright “no” were somewhat encouraged.

Changpeng Zhao: Stablecoins and $6k Support Level Are Positive Signs

While such price movements are most probably attributable to short-term trading activity, taking a broader view on the state of the market yesterday – Binance CEO Chanpeng Zhao offered some reflections on the year as a whole while talking to CryptoGlobe at Consensus Singapore.

We asked him about the proliferation of stablecoins - such as Gemini’s recently launched GUSD – a development Zhao believes is very positive:

Stablecoins are huge, I think people don't understand the impact of a regulated stablecoin... If people understood what the impacts are bitcoin price would be going up now because of all the stablecoins. They are a very good channel for fiat money to come in and spread around the crypto space. I think it’s a very, very positive thing

Moreover, Zhao was keen to look at the general support level for BTC this year:

If you look at the chart, we have seen a very strong support level at $6,000 in 2018, whereas in 2014 it was $200. I never trade myself, I buy and hold. Any minute the bull market will return, historically October to December are the good months... But I don't make predictions we just react to markets

 

day_CryptoCompare_Index_BTC_USD_366_11537524721284.pngSource: CryptoCompare

Weekly Newsletter

Two Brazilian Crypto Exchanges Close Following Change in Tax Laws

  • Two Brazilian exchanges have been forced to close in the face of strict new regulations.
  • Exchanges are required to keep track of all transactions made with cryptocurrency or pay fines. 

Two Brazilian cryptocurrency exchanges have been forced to shut down following the enactment of new tax laws. 

Following reports of rampant cryptocurrency-related fraud in 2019, Brazilian politicians have created and enforced new tax regulations for the industry of cryptocurrency. 

According to a report by Bitcoin.com, exchanges Acesso and Latoex are two of the first casualties of the increased regulation. Both exchanges have decided to end operation, rather than pay the hefty fines and comply with strict regulation in the face of shrinking trading volume. 

Pedro Nunes, co-founder of Acesso Bitcoin, told Portal do Bitcoin, 

After the Federal Revenue Service introduced these rules we noticed a significant decrease in the traded volume. We also feel that the market has cooled off for smaller exchanges.

The new regulations, implemented in August 2019, require traders and brokerages to report all transactions involving cryptocurrencies. Failure to comply results in penalties ranging from 500 BRD to 1500 BRD ($120 - $360). 

Exchanges say that compliance with the new regulation requires expensive investment into new resources, which has been untenable for smaller and less profitable organizations.

Featured Image Credit: Photo via Pixabay.com