Cryptocurrencies Resume Recovery; MasterCard Eyes Blockchain

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by | 1st June 2018 | 0 comments

Big days for cryptocurrencies concerning news as governments, investors, mutual funds, credit cards, and companies are making moves on the crypto market. Bitcoin and Ethereum moved position into a bullish atmosphere.

Mastercard to develop blockchain technology

The credit card giant Mastercard filed a patent on May 31 to the US Patent and Trademark Office called “Method and System for Authentication of Coupons via Blockchain.”

The development suggests a technology “specifically [for] the storage of coupon data in a blockchain to ensure redemption only by authorized individuals and immutability of coupon data.”

Mastercard looks to reduce the risk of data manipulation in the use of coupons and to ensure only the “specific transaction account is eligible to redeem the coupon.”

it could be the one of the first data Mastercard does in the blockchain technology, and the future can be the door for cryptocurrencies.

Central banks have to improve to compete with cryptos – IMF official

Dong He, deputy director of the monetary and capital markets department at the IMF, said that if central banks want to compete with cryptocurrencies, they need to offer better solutions or versions of their “fiat” currencies.

In an article, He affirmed that “crypto assets may one day reduce demand for central bank money,” as cryptos may offer better solutions to customers than “fiats” currencies in the future. So Banks should improve themselves.

One solution may be that central banks “could make central bank money user-friendly in the digital world by issuing digital tokens of their own to supplement physical cash and bank reserves. Such central bank digital currency could be exchanged, peer to peer in a decentralized manner, much as crypto assets are.”

So, according to He, central banks would be the next big cryptocurrency issuers.

Freeway for blockchain companies in Vermont

The US state of Vermont signed a bill allowing for the creation of “blockchain-based limited liability companies,” according to a press release published by the state.

The bill defines that blockchain businesses that use blockchain technology for a material portion of its business activities would have the ability to pay taxes to the state in cryptos.

Bitcoin extends advance, as it ‘has found a bottom’

Bitcoin closed Thursday with gains against the US dollar as investors are looking the May 29 low at 7,060 as a bottom and they are extending the bounce to intra-week highs.

BTC/USD is currently trading at 7,490, almost flat on the day. Robert Sluymer, head of technical strategy at Fundstrat Global Advisors said in an interview with CNBC that Bitcoin seems to have found a bottom around the 7,000 area.

“When we step back, we see the first phase starting to happen. We think Bitcoin is starting to bottom off some very key support around $7,000 and we think it’s going to start a recovery process here.”

According to Sluymer, momentum looks positive with the RSI trading around 40, well above the 30 level. “We think the setup is very attractive here.”

BTC/USD is trading at intra-week highs, and a close above the 7,660 area would be a confirmation for further recovery. In this case, next resistances are at the 8,000 and 8,600 regions. Then, 9,000, and 9,500.

To the downside, a return below the 7,400 would open the doors for more weakness with the 7,000 area as the primary support. Below that, 6,500 and the crucial 6,010.

Ethereum consolidates gains above 560

ETH/USD Daily Chart - 01-06-18

Ethereum is trading at weekly highs against the US dollar as the pair managed to consolidate levels above the 560.00 area and it extended gains until 590.00.

The pair is trading slightly positive on Friday at 780.00. Indicators are suggesting more bullishness in the short term is possible.

Above the 560.00 area, the cross will find next resistances at the 600.00 and 645.00 areas. A close above the 20 and 50 days moving average would be a signal for more bullishness.

To the downside, if the pair gets back below the 560.00 area. Then, 500.00 will be the next significant area, and nothing else is in between there and the 400.00 area.

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