Welcome back to another instalment of Cash Kings’ Crypto Newsletter, where our goal is not only to update our members but also to educate each of them on all that is Cryptocurrency.
In the last 7 days, this unique sector has received an uptick in exposure thanks to a surprising (but somewhat not so surprising) tweet from none other than President Donald J Trump. This is the first time a sitting US President has acknowledged the existence of crypto currency. As you can see below, Trump is not a fan of Bitcoin or Facebook’s proposed currency, Libra and instead hails the US Dollar as the “most dominant currency” in the world, however it is our opinion that any publicity is good publicity.
After a bounce off support at $9,300 USD up to $10,750, Bitcoin has fallen back down again to the $9,600 USD region and the question now is, will it be able to hold the critical $9,300 support level? The RSI technical indicator suggests there might be some improvement in its price in the following week however the volume traded appears to be dying off. Time will tell!
Meanwhile Ethereum also seems to be on the slide back down to its $198 USD support level, which many investors will be looking towards for a sign of strength and optimism in the currency.
As Trump’s tweet outlined, mass scepticism regarding Libra prevails to become the week’s biggest crypto news story. At this time, US Government hearings on Libra continue and many questions have been pointed towards Libra’s operational head and Facebook employee, David Marcus, whether the company is fully equipped to handle the potential volatility and privacy concerns relating to the coin. Congress’ apprehensions regarding the coin centre around the immense economic power Facebook might hold through the control of a global currency and ecosystem. Marcus has quashed many of these concerns by explaining that Libra will be an entirely separate entity from Facebook and will be independently based in Switzerland, in order to ensure the services can be used globally and not bound by local United States’ restrictions. Despite Congress viewing this proposal as “one of the biggest issues this panel will deal with in decades”, the vast amount of resources congress are spending to research the impact of Libra can only mean that a future crypto economy is inevitable and is here with us to stay.
Robinhood Series E Funding Round
In an official announcement on July 22, cryptocurrency-inclusive trading platform, Robinhood has raised $323 million, placing its valuation at $7.6 billion. The platform is only six years old and its userbase has grown significantly from 4 to 6 million in only the last year, with a user base of mainly millennials. According to an anonymous source from Bloomberg, Robinhood has been making steady inroads to expand its existing cryptocurrency infrastructure and has partnered with Chicago trading firm, Jump Trading to execute its crypto trades. As Robinhood continues to grow within the sphere of millennial investors, we predict that so too will the volume in cryptocurrency traded.
New Crypto Regulator Division in New York
The state’s financial regulator, the New York Department of Financial Services (NYDFS) has established a new department that will be solely responsible for licensing and regulating crypto-related businesses. NYDFS will begin requiring that businesses involved in the issuance and trade of digital assets receive a registration called a BitLicense, with the goal of assuring customers in the space that operators are observing certain standards regarding disclosure and consumer data protection.