Two Halvings and Extreme Fear
Latest from the crypto, stock, and financial markets. News of the week of April 6-12 in the BTCMEX review.
Bitcoin Cash and Bitcoin SV halvings happened this week
Both Bitcoin forked alts Bitcoin Cash (BCH) and Satoshi’s Vision (BSV) went through block reward halvings on Wednesday, April 8, and Friday, April 10 respectively.
Bitcoin Cash price gained 11.2% in value on the day of halving, surging from $249.23, up to $277.22. The altcoin has lost 6% by the end of the week and is trading at around $240 at the moment of writing this article.
The BCH community is concerned about the network security as the crypto hash power dropped 80% after the event, making a 51% attack currently cost less than $10,000 per hour on the network.
Bitcoin SV – hard forked from Bitcoin Cash in 2018 – experienced its first halving two days after BCH. Mirroring the BCH halving, Satoshi’s Vision value surged 11% right after the event, and dropped 15% later on, currently trading at a range of $190.
BSV mining community also saw a reduction in hash rate. It’s explained by the fact that miners are currently moving their power to Bitcoin blockchain, as the most profitable. Coin Dance, the BTC chain now controls 98.7% of the hash rate distribution among all three blockchains.
As BTCMEX reported earlier, on March 26, 2020, the Bitcoin mining community witnessed the biggest mining difficulty percentage drop in the last 9 years, with the adjustment of nearly 16%.
Extreme fear drives the market
On April 10, Bitcoin (BTC) price dropped $200. Cryptocurrency is now trading below USD 7,000. Meanwhile, according to the crypto sentiment analysis, the Fear & Greed Index shows a reading of 15, which is extreme fear, usually seen in times of high volatility.
The total market capitalization has also slid below $200 billion. Other cryptocurrencies followed the global trend. Ether has lost 5.3% in value.
The first crypto fund landed on Toronto Stock
3iQ – a Canadian asset manager – has launched a Bitcoin-tied fund on Toronto exchange after three years of legal and regulatory negotiations. Crypto exchange Gemini is acting as a custodian for The Bitcoin Fund. It listed nearly 1.5 million Class A ‘QBTC.U’ shares on TSX on April 9. The fund’s shares are currently trading for around $11. The price indexes used by the fund are provided by crypto data company CryptoCompare and VanEck Europe subsidiary MV Index Solutions.
3iQ partnered with Mavennet earlier and announced its Canadian dollar-backed stable coin project. The coin QCAD is launched on ERC-20 blockchain.
France paving the way for CBDCs
Bank of France is conducting tests of its national currency and has recently released the results. According to the document, the central bank is looking for innovative interbank settlement solutions. It’s planning to elect ten CDBC-centric applications by July 10. The investigation is considered to show the way to the digital euro.
France has taken significant steps to absorb blockchain and the system of digital assets earlier. It became one of the countries that shows an interest in improving and developing cryptocurrency-related definitions and regulations. French fin regulators gave the first ICO approval back in December. The Autorité des Marchés Financiers (AMF), the stock market regulator in France, is currently insisting on making a clear digital assets classification.