Markets grow as Fed’s printing
Bitcoin spiked above $10,000. Ethereum reached 2020-high preparing for 2.0 testate launch. Russia passes the crypto bill. The week of July 20-26 in the BTCMEX cryptocurrency and blockchain news recap.
On Monday, July 20, Bitcoin broke out of its sideways range along with the spiked trading volume, reaching the daily higher high of $9,775. The price surge followed the expectation that the US Federal Reserve will follow suit with a $1 to $2 trillion economic stimulus package.
The price of BTC rose to as high as $10,272 on Sunday, July 26, in an unexpected weekend rally. The spike liquidated $74 million worth of long contracts on BitMEX alone. At the same time, the on-chain data shows Bitcoin’s recent surge to $10K is not pressuring traders to sell.
Network fundamentals remain encouraging, while Sunday’s spurt similarly marks a firm contrast to the pattern of compression that Bitcoin exhibited in prior weeks. A cycle of higher lows and lower highs had placed BTC/USD in a narrowing corridor that analysts agreed must soon break.
Markets grow as Fed’s printing
In traditional markets, silver started off the week with a strong pump which completed a nice cup and handled pattern on the daily timeframe, being up 19.25% for the week.
Gold has also continued its upward trajectory by pushing to a new high at $1,874 today. To date, gold has gained 29% since the coronavirus-driven market correction occurred in mid-March.
The S&P 500 and Dow also continue to push a bit higher each day, further proof that investors expect that the Federal Reserve and central banks across the world will continue to roll out stimulus.
Russia finally passed the Crypto Bill
The State Duma — Russia’s legislative body — has passed a bill titled “On Digital Financial Assets” in its final third reading, local news agency Regnum reports July 22.
Following the latest Duma’s decision, the bill “On Digital Financial Assets,” or DFA, is expected to be officially adopted in Russia on Jan. 1, 2021. The bill provides a legal definition of digital assets and legitimizes cryptocurrency trading in Russia. However, the bill prohibits the use of cryptocurrencies like Bitcoin as a payment method.
The new law will reportedly allow local firms to issue stablecoins.
ETH sets the 2020 record
Ethereum 2.0 developers formalized the date of the first community-run testnet on August 4. According to a July 23 post by Danny Ryan, the Ethereum Foundation’s the 2.0 coordinator, Medalla – a reference to the “Olympic” Ethereum 1.0 testnet – will launch no earlier than August 4. The launch date is not set in stone as there are two conditions necessary for its launch. The first is the “minimum genesis time” — a manually set parameter that defines the earliest that the testnet can be launched. The second condition involves the number of validators who signed up for the testnet. Medalla will only start if at least 16,384 deposits for 32 ETH each have been committed 48 hours before the minimum genesis time. If that fails, it will launch 48 hours after the milestone is reached.
Meanwhile, Ethereum rallied above $300 to a new 2020 high. As BTC briefly pushed above $9,700 and Ether set a 2020 high at $309 on July 25.