Holpop News

Unfazed by legislators’ repeated warnings of a fresh crypto crackdown, Indian investors have poured $38.8 billion into cryptocurrencies over the last year. According to data from blockchain analytics firm Chanalysis that was reported by Bloomberg on June 28, crypto investments increased during mid-2020 before going parabolic as the markets surged into new all-time highs towards the end of the fourth quarter. Chainalysis believes that the total amount invested in cryptocurrency in India has increased from $200 million to $40 billion in the last year, with the business predicting that 15 million Indians are exposed to cryptocurrency.

The current quarter is also on course to be the second-worst for BTC in the nearly eight years since it began in 2014. According to Skew, Bitcoin is presently down over 46 percent for the quarter, the worst quarter since Q1 2018 — when it lost nearly 50 percent of its value in only three months as a result of the fallout from 2017’s all-time highs. Since the start of 2019, Q2 2021 is just the fourth quarter that has seen a drawdown for Bitcoin’s value, with BTC’s price falling roughly 10.6% during Q1 of 2020, 13.6% in Q4 2019, and 21.5% in Q3 2019.

Bitcoin (BTC) shed $1,000 in minutes on June 21 as fresh news from China succeeded in routing bulls yet again. According to Cointelegraph Markets Pro and TradingView data, BTC/USD struck a local low of less than $32,500 on Monday. The cause, which disrupted a day of recovery from another drop, appeared to come from China once again in the form of a significant bank statement confirming that it would not enable the use of its services for Bitcoin or cryptocurrency transactions. Involved was China’s third largest bank, the Agricultural Bank of China.

An unusual phenomenon called ‘backwardation’ is taking place in Bitcoin (BTC) futures trading, mainly the June contract, which expires on June 25. Fixed-month contracts typically trade at a little premium, indicating that sellers seek more money to defer payment for a longer period of time. On healthy markets, futures should trade at a 5% to 15% annualized premium, in accordance with the stablecoin lending rate. This is known as contango, and it is not limited to crypto markets. This is an alarming red warning if this indication declines or goes negative. This is referred to as backwardation, and it shows a negative mood.

Bitcoin fell closer to a crucial support level, as the Dow and S&P 500 fell after the Federal Reserve said that it will raise interest rates twice in 2023. The price of Bitcoin (BTC) fell further immediately after Federal Reserve Chair Jerome Powell said that the Fed will move up its plan and schedule two interest rate rises in 2023. Bitcoin price was already seeing weakness in the early trading hours after losing the $40,000 level to mark an intra-day low at $38,300. The Dow and S&P 500 also pulled back 0.77% and 0.54% respectively.

After El Salvador passed the bill making bitcoin legal tender alongside the U.S. dollar, a growing number of lawmakers in neighboring countries have either expressed their interest in making a similar move. A number of Latin American Lawmakers have indicated an interest in cryptocurrency. Paraguay, Argentina, Panama, Brazil, and Mexico are among the countries involved. Tonga and Tanzania are also said to be interested in bitcoin. El Salvador could set a trend of nations adopting bitcoin. JPMorgan recently said that “similarly situated” countries could follow El Salvador’s move to make bitcoin legal tender. Meanwhile, the International Monetary Fund (IMF) says it sees legal and economic issues regarding this move by El Salvador.