People in Argentina prefer to pay 10% more for each USD worth of Bitcoin or DAI than they would for its fiat counterpart.
Argentina is undergoing a new episode of market jitters after the victory of the opposition forces in the legislative elections. As analysts predict a new devaluation on the horizon, people are rushing to hoard as many dollars as they can… Crypto dollars, to be more specific.
So far this week, the price of the “Dólar Bitcoin,” (the referential price of the dollar in the cryptocurrency market) has surpassed that of the “Dolar Blue” (the referential price of the dollar in the unregulated parallel market). People swap crypto dollars at a premium of over 10% in most cases.
Argentina Wants Bitcoin
According to the data aggregator Criptoya, the Spot Bitcoin Dollar is about 210.05 ARS. In contrast, the famous “Dolar Blue” is priced at about 200.5 ARS —on november 17, 2021.
When the average Argentine buys physical dollars in unregulated markets, the Dólar Blue is taken as a reference. Still, an increase in the appreciation of the crypto dollar (or Dólar Bitcoin) is a sign that Argentines are finding an advantage in acquiring cryptocurrencies through exchanges and P2P trading platforms. On Localbitcoins, the average dollar is already priced at 213 ARS.
Meanwhile, the price of stablecoins is also above average. On Ripio, one of the most popular exchanges in the country, DAI – a highly popular decentralized stablecoin in Argentina – was being bought at an impressive price of 231 ARS. The lowest price for each DAI token was nearly $210 on Binance P2P, making it the cheapest dollar equivalent for cryptocurrency enthusiasts in Argentina.
As a reference, the price of the official dollar (determined by the Central Bank of Argentina) barely reaches 105.9 ARS per unit sold.
According to experts, the interest in stablecoins and cryptocurrencies spiked in the country as response to the internal dynamics of the markets. The crypto dollar is more related to the spot liquidated dollar than it is to the dolar blue, which makes it more attrative for people looking to preserve their worth.
Santiago Di Paolo, Head of Community Growth & Research in the argentinian crypto platform Lemon, told the local news outlet Ambito that cryptocurrencies are easier to handle and argentinians can access a series of services that are not available for those who still use physical dollars or operate inside the traditional finance system:
“The advantages of having ‘crypto dollars’ are much more comprehensive than owning the physical dollarz, because on platforms such as Lemon Cash you can earn fixed annual crypto gains of up to 13% in DAI (stablecoin) within the current financial ecosystem, or send the digital asset to any place around the world instantly and at a lower cost”.
Local Governments Want to Tax Crypto Gains
In view of the severe financial crisis the country is experiencing, and the explosion in the popularity of cryptocurrencies, local administrations have started to target virtual currencies, looking for ways to either restrict their use in order to strengthen the peso, or at least make a profit from this economic activity.
President Alberto Fernandez recently stated that he was not averse to the possibility of adopting Bitcoin as a legal means of payment, considering that trading volume and adoption has increased spontaneously.
And already two Argentine provinces are forcing citizens to pay taxes on profits obtained from cryptocurrency trading.
The first one, Córdoba, determined that cryptocurrency transactions will be taxed, but extends this tax provision to individuals or companies that receive payments in cryptocurrencies for their products or services.
For its part, Tucumán published last week Law No. 9421, which introduces changes to the Tax Code (Law No. 5121), modifying Article 223 of the Tax Code to include cryptocurrency traders within the definition of operators of purchase and sale of foreign currencies and public securities, obliging them to pay taxes.
Bitcoin Weekly Forecast December 6 — 10, 2021
Bitcoin BTC/USD ends the trading week at 55380, continues to move within the correction and the bullish channel. Moving averages indicate a bullish trend. Prices are again testing the area between the signal lines, which indicates pressure from buyers of the asset and a potential continuation of the growth of the asset’s quotes. At the moment, we should expect an attempt to develop a correction and a test of the support area near the level of 53605. Where can we again expect a rebound and a continuation of the rise in the Bitcoin rate with a potential target above the level of 77255.
Bitcoin Weekly Forecast December 6 — 10, 2021
An additional signal in favor of the growth of BTC/USD quotes in the current trading week December 6 — 10, 2021 will be a rebound from the lower border of the bullish channel. The second signal will be a rebound from the support line on the relative strength index (RSI). Cancellation of the Bitcoin growth option will be a fall and a breakdown of the 46355 area. This will indicate a breakdown of the support area and a continued fall in BTC/USD quotes with a potential target below the level of 40505. Confirmation of the development of the bullish movement will be the breakdown of the resistance area and closing of quotes above the level of 65005.
Bitcoin Weekly Forecast December 6 — 10, 2021 suggests an attempt to support area near the level of 53605. Then, the cryptocurrency will continue to rise to the area above the level of 77255. An additional signal in favor of the growth of the Bitcoin rate in the current trading week will be a test of the trend line on the relative strength index (RSI). Cancellation of the option to raise Bitcoin cryptocurrency quotes will be a fall and a breakdown of the 46355 area. In this case, we should expect a continued decline with a target at 40505.
Ethereum out performs Bitcoin, ETH regains the majority its flash-crash losses
- Ethereum price, like the broader cryptocurrency market, suffered a massive flash-crash during the early midnight trading on Saturday.
- 17% losses at one point were measured.
- Throughout the remainder of Saturday, buying pressure wiped out nearly all of the overnight losses.
Ethereum price performance on Saturday has been nothing short of spectacular. Considering that most of the altcoin market is down fifteen to twenty percent, Ethereum’s daily close of down only 4% is a testament to its strength.
Ethereum price regains nearly all of its flash-crash loss, handily outperforming the broader market
Ethereum price experienced one of the fastest and deepest flash-crashes since May. The timing of the collapse couldn’t have been more perfect: midnight Eastern Standard Time (New York). Bears could push Etheruem to the $3,503 price level before a bullish reversal occurred.
The two primary support levels holding Ethereum price up are Senkou Span B at $3,700 and the third-highest volume node in the 2021 Volume Profile at $3,410. While highly bullish in the short-term, indecision remains and downside risks.
Despite the massive recovery, Ethereum price remains inside the daily Cloud – an area rife with indecision, volatility, and whipsaws. The Cloud is the place where trading accounts go to die. Etheruem needs a daily close at or above the $4,650 price level to convert to a full-blown bull market.
Ethereum price is tilted more bearish here, especially with the Chikou Span below the candlesticks and in open space. Adding to the bearish outlook is the bear flag breakout on the Relative Strength Index. However, the final oversold level at 40 in the Relative Strength Index might yield some support.
ETH/USD Daily Ichimoku Chart
The threshold that bears need to achieve to convert Ethereum price into a bear market is a much more manageable price range than converting to a bull market. For example, whereas Ethereum needs a 15% move above $4,000 to convert into a bull market, short-sellers only need a 7% move below $4,000 to convert Ethereum into a bear market.
Any daily close at or below $3,700 would position Ethereum below the Cloud and into bear market territory.
Top Analyst Says One Crypto Asset Will Spearhead Bull Market Recovery – And It’s Not Bitcoin
A closely followed crypto analyst and trader is naming one altcoin that he believes will reignite the crypto bull market.
Pseudonymous crypto strategist Credible tells his 275,300 Twitter followers in a new video that Ethereum’s strong performance against Bitcoin (ETH/BTC) amid the brutal correction is a sign that the markets are still bullish.
“I’m bullish on Ethereum and also in general, as long as we’re holding this monthly support 0.075 BTC ($3,662). I want to show you guys on this massive drop that we just saw, Ethereum/Bitcoin is holding up beautifully… This is when alts take the lead, when alts start shining, guys.
If this was a bear market, Ethereum/Bitcoin would not be popping right now when Bitcoin’s correcting. It would be dropping very, very hard. It’s holding support. We’re pushing up – bullish.
I think alts are going to rebound off of this drop harder than Bitcoin. I think, particularly, Ethereum is going to do it exceedingly well.”
At time of writing, ETH/BTC is trading at 0.086 ($4,224), up over 11% in the last 24 hours.
Looking at Bitcoin (BTC), Credible is also bullish on the prospects of the king cryptocurrency even after an epic crash that saw it plummet from $52,000 to $43,500 in less than an hour.
According to the crypto strategist, he believes yesterday’s deep pullback signalled the end of a macro corrective phase for BTC.
“I believe we’re now wrapping up that flat correction. The expectation is that we’re putting in a higher low above the lows at $30,000 and everything above that is fine, and I think that is what we’re seeing right now.”
At time of writing, Bitcoin is exchanging hands at $49,104, down over 7% on the day.