Changpeng Zhao – Chief Executive Officer at Binance – opined that a growing number of traditional monetary institutions had turned their sight into cryptocurrencies recently, especially bitcoin. He also mentioned that the trading platform would change its structure to comply with the regulatory requirements.
Financial Institutions Are Flocking into BTC
In a recent interview for The South China Morning Post, Changpeng Zhao – Founder and CEO of Binance – shared his views on the latest trends in the crypto space. According to him, global financial institutions and investors have already realized the digital assets’ merits. With that said, they have started jumping on the cryptocurrency bandwagon, with bitcoin being their primary interest:
“The financial institutions are coming big time. We also see the traditional financial services from some of the bigger names moving into the space.”
Changpeng Zhao, also known as CZ, explained that bitcoin is not only a currency but also a multiasset class technology and a whole new platform. For that reason, many of the leading financial institutions view it as an investment instrument.
The top executive asserted that digital assets would play a massive role in the future monetary network. Predicting, though, which exact sectors of the economy they will invade would be “quite hard” at the moment.
The Regulatory Issues
The largest cryptocurrency exchange has faced some hurdles from regulators recently. Watchdogs from the UK, Hong Kong, Japan, and Singapore have applied multiple regulatory warnings to Binance in the past months.
A few weeks ago, the Financial Sector Conduct Authority (FSCA) of South Africa also joined that list. According to the regulator, Binance does not have the necessary registration to offer brokerage services or give investment recommendations in the African country.
Attempting to solve these problems, Zhao asserted that the trading venue would change its structure. More specifically, Binance would rebuild itself into a licensed financial institution with centralized headquarters:
“Four years ago we wanted to embrace decentralization but we do run a centralized exchange. We need a shift. We need to enhance. We are making those changes to make it easier for regulators to work with us.”
What about CBDCs?
Subsequently, CZ gave his two cents about central bank digital currencies and their future employment. He described them as controversial assets that have both advantages and minuses.
CBDCs would educate people about cryptocurrencies. They would also increase the acceptance of digital assets among the general population:
“Once people use CBDC to pay for a cup of coffee, they could also say ‘Oh, this is very similar to bitcoin, I could also use bitcoin to pay my other friend in different country.’”
However, limited freedom and government control would be some of their most significant disadvantages.
Ethereum Outperforms Bitcoin, Why ETH Could Rally To New ATH
Ethereum started a fresh increase above $4,175 against the US Dollar. ETH could gain pace if there is a clear break above $4,300 in the near term.
- Ethereum was able to climb above the $4,175 and $4,200 resistance levels.
- The price is now trading above $4,200 and the 100 hourly simple moving average.
- There is a major rising channel forming with support near $4,175 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could extend its increase if it clears the $4,300 and $4,320 resistance levels.
Ethereum Price Could Rise Further
Ethereum started a fresh increase after it settled above the $4,050 level. ETH was able to clear the $4,750 resistance zone and the 100 hourly simple moving average.
Ether price even traded above the $4,250 resistance zone. A high was formed near $4,313 and the price is now consolidating gains. It traded below the $4,300 level. An immediate support is near the $4,260 level. The stated level is near the 23.6% Fib retracement level of the upward wave from the $4,091 swing low to $4,313 high.
There is also a major rising channel forming with support near $4,175 on the hourly chart of ETH/USD. An immediate resistance on the upside is near the $4,300 level.
Source: ETHUSD on TradingView.com
The next major resistance is near the $4,320 level, above which the price might start a fresh rally. In the stated case, the price might rise towards the $4,400 level. Any more gains could lead the price towards the $4,550 level.
Dips Supported in ETH?
If ethereum fails to continue higher above the $4,300 and $4,320 resistance levels, it could start a fresh downside correction. An initial support on the downside is near the $4,260 level.
The first major support is near the $4,200 level. It is close to the 50% Fib retracement level of the upward wave from the $4,091 swing low to $4,313 high. The main support is near $4,175 and the channel trend line. Any more downsides could lead the price towards the $4,050 support. The next major support for the bulls is near the $4,000 level.
Hourly MACD – The MACD for ETH/USD is gaining pace in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now well above the 50 level.
Major Support Level – $4,175
Major Resistance Level – $4,320
Terra prepares to burn more than 9% of LUNA’s total supply
Burning nearly 90 million LUNA tokens into the community pool can put an upward pressure on the native token’s price.
Do Kwon, co-founder and CEO of Terraform Labs, the South Korean company behind the blockchain project Terra (LUNA), recently announced on Twitter that on-chain voting for project 44’s proposal will begin on Wednesday. ).
The proposal to start burning 88,675,000 LUNA from the community pool to mint 3 – 4 billion UST will reduce the total supply of native token by more than 9%.
TVL on Earth reached ATH
After the integration of the IBC protocol last week and the launch of Wormhole V2 support for Terra, the total blocked value (TVL) in protocols on the network has reached a new high.
Last week, TVL on Earth reached $10.22 billion, with the Anchor, Lido, Mirror and Terraswap protocols accounting for more than 90% of the amount, according to data from DeFi Llama.
Currently, at US$9.97 billion, Terra is ranked as the fourth blockchain with the largest TVL, following Ethereum, Binance Smart Chain and Solana.
New Bitcoin ETF Offers Shorting Bitcoin Futures, Creators Warn of Multiple Risks
Direxion has filed for a Bitcoin ETF that allows traders to short BTC futures contracts
According to an article by Bloomberg, a new Bitcoin ETF, if approved, will enable traders to short Bitcoin futures. The filing was submitted on Tuesday, Oct. 26.
Direxion wants to launch Bitcoin futures ETF for short-sellers
Bloomberg has written that, on Oct. 26, Direxion submitted documentation to launch the Direxion Bitcoin Strategy Bear ETF. Last week, two ETFs that track the performance of Bitcoin futures were launched by ProShares and Valkyrie.
Now, the BTC futures ETF industry in the U.S. may reach a new milestone—if the launch of the ETF for bears is approved by the U.S. Securities and Exchange Commission.
The debut of Bitcoin futures products last week prompted Bitcoin growth to almost $67,000 and a new all-time high.
However, today, the flagship cryptocurrency retreated below the $60,000 level as a mind-blowing half-a-million worth of liquidations were conducted across major exchanges: Binance, Bitfinex, OKEx, Huobi and so on.
Slightly over $500 million worth of those crypto liquidations were long positions.
BITO ETF gains $1 billion in just two days
ProShares Bitcoin ETF last week became the second-most-traded asset on the NYSE on its first day of trading. Buy orders to the tune of 10,100 were placed on BITO (the ticker the ETF goes by), and seven times more orders were placed to sell it.
After trading for two days, BITO reached $1 billion in net asset value. That is the equivalent of the net asset value of several Canadian Bitcoin ETFs that have been trading for a while already.
Direxion fund bears lots of risks
The new Bitcoin ETF filed for by Direxion bears numerous financial risks for short-sellers, the company warns. Trading this ETF may lead to shorters getting wiped out, Bloomberg writes, and Bitcoin’s massive price swings would be a problem here, too.
The SEC filing states that if you are not prepared to lose all your funds by investing in this ETF, you should not bet on it.
This week, some in the crypto community also expect another Bitcoin futures ETF to kick off—the one filed for by the VanEck asset manager.