A Crypto Version of USD Emerges; Bitcoin Holds Above Short-term Line

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by | 16th May 2018 | 0 comments

Payments start-up Circle announced a new cryptocurrency pegged to the US dollar, a faster and better digital version of the Greenback according to the press release.

Circle is a start-up backed by Goldman Sachs and Baidu that also announced today an investment round that raised $110 millions led by Bitmain, the crypto-mining company. The series put the company in a valuation of $3 billion.

Jeremy Allaire, CEO of Circle, said that “It’s basically a dollar that operates on blockchain,” and it will unlock “an incredible amount of power for the dollar.”

Customers will need to hold $1 for each USD coin. “There are a number of banks who are excited about it and will support it,” Allaire affirmed. The USD will be able to move in seconds thanks to Blockchain technology.

The company expects to add coins for Asian currencies and later for the Euro and the British Pound.

CFTC pushes SEC to catch Ether

Brian Quintenz, a commissioner at the CFTC, pushed officials at the Securities and Exchange Commission in the US to decide the status of Ether as soon as possible.

The question is about the status of the second largest cryptocurrency: is it a security or not? And then, fall under the SEC jurisdiction. About a timeline, Quintenz said, “I wouldn’t say days, but I wouldn’t say months.”

Amazon Web Services to launch a blockchain easy-to-use platform

AWS and Consensys signed an agreement to launch Kaleido, an all-in-one blockchain platform that will simplify enterprise use of the technology at a low cost. It is going to work like an “easy button” to deploy blockchain technology.

Steve Cerveny cofounder of Kaleido said that companies would be able to focus on the scenario: “We give them a simple platform to build their company on the blockchain.”

Bitcoin unable to break above 8,800, but holds above uptrend line

The king of cryptocurrencies was unable to extend gains Tuesday as the BTC/USD rejected the 8,800 level. The pair closed 2.2% down on Tuesday at 8,420.

On Wednesday, BTC/USD is trading almost flat around 8,460 as the pair is holding above the dynamic support that comes from the April 9 and 10 lows and tested by May 12 and 14 lows.

The future of the pair is still unclear, at least in the short term. The unit performed a doji candle on Monday, indicating indecision, and it is trading inside an ascendant triangle.

If the pair breaks below the 8,400.00 area, it will face buying interest at the 50-day moving average at 8,290.00; then, the 8,200 level is the support.

To the upside, the pair needs to clear up the 8,820 level before confirming a recovery. Then BTC/USD will test the 9,000 area and the 9,400 level.

ETH/USD extends decline below 710.00

ETH/USD Daily Chart - 16-05-18

Ethereum opened Wednesday with losses as the ETH/USD is trading down for the third day in a row. The 200-day moving average level still holds the pair at 680.00.

After being rejected by the 746.00 area on Monday, the BTC/USD lost 7.3% to trade today at 693.00. Currently, the pair is trading 1.60% down on the day.

To the downside, if the pair breaks below the 680.00 level, it will find supports at 640, May 12 low, the 600.00, and the 557.00 critical area.

To the upside, bulls have to push the pair above the 747.00 area before confirming the recovery. Above that, selling interest can be identified at 785.00 and 830.00. Then, the 900.00 area.

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