Below is a short note on recent moves and news in Bitcoin (BTC/USD) and digital assets from Jonas Luethy, Sales Trader at the UK based digital asset broker GlobalBlock.
Evergrande won’t impact markets to the extent feared, Bitcoin recovers
Bitcoin dropped by almost $5,000 after news broke last week that China would ban crypto again. After it emerged that fears were exaggerated, most assets regained their previous levels. Some experts have even suggested that Bitcoin is entering a bull run and might pass $45,000. Most altcoins are in the green, including Ethereum (ETH/USD), which passed $3,000 again.
Offshore Chinese exchanges not accepting new users from the mainland
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Exchanges like Huobi are not accepting new users from mainland China and closing all Chinese accounts effective December 31. DEXs like Sushiswap and Uniswap have gained popularity after China banned their centralized counterparts. DEXs can be set up in minutes as they have no KYC rules in place and require nothing from users except a crypto wallet. DYdX, a decentralized derivatives exchange, has attracted a huge number of new users, surpassing Coinbase in trading volume for the first time.
Debated $1T infrastructure bill voted Thursday this week
The $1 trillion infrastructure bill that was subject to heated debate earlier this year will be voted on September 30. It will require all crypto-related entities to report tax. Members of the crypto community and even some legislators fear the legislation will stifle financial innovation. Miners, stakers, wallet providers, software developers, and node validators will all have to report transactions to the IRS. The bill aims to obtain $28 billion for Uncle Sam, which is why Speaker Nancy Pelosi and other prominent politicians are confident it will pass.
Cardano partners with COTI, Chainlink
Cardano’s (ADA/USD) use case will develop further as a result of several exciting new partnerships. The first is with software development firm COTI. COTI and Cardano are going to create Djed, an algorithmic stablecoin. Cardano has also entered into a partnership with Chainlink (LINK/USD), whose native token is the 15th biggest by market cap. The partnership might push Cardano ahead of Ethereum in terms of market cap.
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