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Pay Close Attention to Bubbles in Venture Capitalist Altcoins and Watch as they Pop

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In the early days, the idea of venture capital didn’t match well with crypto or maybe it did but potential venture capitalists were largely reluctant.

There were a thousand and one different ways one could easily justify the reluctance but after a few years, the venture capitalists that disregarded the cryptocurrency sector eventually became disregarded by the same sector, forcing them to run back either because they now saw that it was a hit or simply for FOMO.

However, there still were quite a few of these VCs who bought into the sector and are still smiling today.

Predicted Altcoin Pop

However, a recent tweet from ‘Trading Room’, drew a parallel between venture capital funds and a predicted pump in altcoin value. 

According to the tweet:

Around the middle of last year, the value enjoyed by the altcoins backed by venture capitals and even the crypto market, in general, began to change, ending a two-month dump period. Trading Room suggests that this might not be unconnected to the annual half-year closing for these VC supported funds.

How’s the Near Future Looking?

At the moment, most of the major altcoins are performing satisfactorily even if there are brief moments when they trade in the green. However, that could change anytime soon. If last year’s trajectory is to be considered, these enticing altcoin bubbles just might burst sometime within the next week.

Market Visualization
Crypto Heatmap By Coin360

However, the most certain part of the cryptosphere is uncertainty. There’s a chance, however slim, that these pops don’t happen in the space of a few days and the bubbles are enjoyed a bit more.

On one hand, altcoins currently look good and don’t portend any doom at all. On the other, however, history is not to be easily discarded and some analysts and traders like Trading Room are known to have helped give investors a soft landing with forecasts especially when it supports a pattern being formed, however slowly.

Generally, even if the pops may not last, it would be very wise to expect them soon.

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Facebook Libra Risks to Financial Stability Demand ‘Highest’ Regulatory Standards, Says G7

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The G7 group of nations has warned that cryptocurrencies such as Facebook’s Libra are a threat to global financial stability.

A task force set up by the G7 to examine the issues said that rules of the “highest” standards are needed to minimize the use of digital currencies in money laundering and funding terrorism, Reuters reportsThursday.

Following a meeting of finance chiefs from the G7 in Chantilly, France, this week, the group also said it would address tax issues raised by the digital economy, as per a draft summary of the meeting obtained by Reuters.

As expected, Facbook’s Libra and its perceived risks to the monetary control of regulators was high on the agenda at the meeting, although some benefits were also observed.

Benoit Coeure, European Central Bank (ECB) board member and head of the G7 task force, told the G7:

“A global stablecoin for retail purposes could provide for faster and cheaper remittances, spur competition for payments and thus lower costs, and support greater financial inclusion.”

Yet, he went on to say that such cryptocurrencies raise “serious risks” to policy priorities, such as anti-money laundering, financing of terrorism, consumer and data protection, competition and compliance with tax rules.

Bank of France governor and and member of the governing council of the ECB, Francois Villeroy de Galhau, also said that, while regulators seek to encourage innovation, “that cannot come to the detriment of the security of the consumer.” He also said more details were needed regarding gray aspects of Facebook Libra.

A piece in the Financial Times today further quotes Coeure as saying that cryptocurrencies like Libra “could also pose issues related to monetary policy transmission, financial stability and the smooth functioning of and public trust in the global payment system.”

French finance minister Bruno Le Maire echoed previous concerns over the threat to the dominance of national currencies by a token launched by a tech firm with billions of users, saying: “The sovereignty of nations might be weakened or jeopardised by these new currencies.”

The draft document from the G7 stated that “significant work” is required from developers of stablecoins like Libra before regulatory approval is likely to be granted.

The FT cites the document as saying:

“As large technology or financial firms could leverage vast existing customer bases to rapidly achieve a global footprint, it is imperative that authorities be vigilant in assessing risks and implications for the global financial system.”

Among its draft recommendations, the G7 says such stablecoins must meet the highest regulatory standards and come under regulatory oversight. A good legal basis in jurisdictions where they operate is also key in order to guarantee adequate protection for stakeholders and users.

The group further lists the need for “operational and cyber resilience” and secure, transparent management of assets to protect market integrity.

source:.coindesk.

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Binance [BNB], Tron [TRX], IOTA [MIOTA] Price Prediction and Analysis – July 18

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Binance (BNB/USD)

Binance [BNB], Tron [TRX], IOTA [MIOTA] Price Prediction and Analysis - July 18
BNBUSD Chart By TradingView

Recently, BQT the new decentralized exchange offering announced Binance’s BNB token as its first listed coin, which was very surprising as most exchanges always go for BTC. BQT aims at creating liquidity by providing well-organized mix coins selected for the capability to pull in buyers and sellers.

Perhaps the BQT announcement could have boosted the price of BNB as it has led to investors gaining confidence in BNB coin. On an hourly chart, BNB/USD pair seems to have undergone a strong bullish pressure over the last 24hrs. BNB started trading yesterday at $24.5913 and has since recovered to trade at $28.4754 currently. That showed an intraday increase by 13.6%, which is considered as a significant upsurge.

All indicators indicated a bullish sign; the 7 day MA gravitated above the 21 day MA throughout the last 24hrs. The RSI indicator also moved up from a low of 33.08 to almost above the overbought level 69.81 before it slightly dipped to a low of 61.74. Notably, the RSI indicator is at the moment trading flat, that indicates a lack of momentum in the market. Increase in the pair’s price shows positive investors sentiments.

Forecast

The 7 day MA is still trading above the 21 day MA that signals a further bullish rally. New target should be set at $30.00.

Tron (TRX/USD)

Binance [BNB], Tron [TRX], IOTA [MIOTA] Price Prediction and Analysis - July 18
TRXUSD Chart By TradingView

TRX/USD pair seemed to have also gained since it has exhibited a bullish outlook over the last 24hrs. The upward rally has also been buttressed by the 7 day MA that was seen trading above the 21 day MA.

The RSI indicator reflected the price recovery because it moved up from a low of 28.68 to a high of 61.58. That showed that the bulls had the upper hand and were in control. TRX is up by 14.8%, having moved from $0.0207 to $0.0243.

TRX saw a short-term upward rally before embarking to a steady flow that was signaled by the RSI that was seen hovering between level 70 and 50 that indicated an increase in bullish pressure.  The RSI indicator is at the moment heading north showing the unwillingness of investors to go short, hoping for the better price value.

Forecast

Both technical indicators are pointing toward an uptrend. The 7 day MA is still gravitating above the 21 day MA that indicates a bullish sign and the RSI heading north that indicates further upward rally. New targets should be set at $0.0250.

IOTA/USD

Binance [BNB], Tron [TRX], IOTA [MIOTA] Price Prediction and Analysis - July 18
IOTAUSD Chart By TradingView

IOTA is also among cryptocurrencies that have experienced a Bullish Run over the last 24hrs. On an hourly chart, the upward pressure has been supported by the 7 day MA that gravitated above the 21 day MA. The pair’s price has gained by 9.3% since it started trading at $0.2652 and is currently trading at $0.2923. 

IOTA/USD has a circulating supply of 2.7 billion coins over the last 24hrs. IOTA saw a short-term bullish pressure due to the presence of a bullish accumulation pattern that was seen simultaneously. This was followed by a medium-term period of consolidation that consolidated below $0.2858.

The market performance indicated by the RSI indicator is on an uptrend.  This shows increase buyouts, with the RSI rising from 32.23 to 66.41.

Forecast

At the moment the 21 day, MA has slightly crossed over the 7 day MA that indicated a bearish signal. Downward momentum is most likely to be seen in the next few hours. New target should be set at $0.273.

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FCA Looking for Specialists in Cryptocurrencies

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The United Kingdom’s regulatory body Financial Conduct Authority (FCA) is reportedly looking for candidates who have extensive knowledge related to cryptocurrencies. News portal CoinGeek reported that they would be working with the Intelligence Services Team at the agency.

The official website describes the role as one that will involve, “considerable amounts of liaison and stakeholder management with internal and external patterns on the topic of crypto assets, financial and economic crime linked themes and the role of various processes and areas in regulating this activity.”

The post said that the candidate will learn a great deal of opportunity to learn from and understand intelligence processes and work, and influence the way we support the breadth and depth of the FCA remit, including the new area of Crypto asset regulation.

This move is especially interesting, because earlier this month, the FCA was proposing rules to address harm to retail consumers from the sale of derivatives and exchange traded notes (ETNs) referencing certain types of cryptoassets.

At the time, speaking about this development, Christopher Woolard, Executive Director of Strategy & Competition at the FCA, had said, “As with our work on the wider CFD and binary options markets, we will act when we see poor products being sold to retail consumers. These are complex contracts built on top of complex assets.”

He had added, “Most consumers cannot reliably value derivatives based on unregulated cryptoassets. Prices are extremely volatile and as we have seen globally, financial crime in cryptoasset markets can lead to sudden and unexpected losses. It is therefore clear to us that these derivatives and exchange traded notes are unsuitable investments for retail consumers.”

In January this year, the FCA had released a paper on cryptoassets regulations specifically for cryptocurrency traders and the community at large.

Source :crypto-news.in

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