Bitcoin Rebound Begins!! 🤔
Bitcoin's $30,000 support level, which had been firmly held for the past month, briefly broke and then rebounded. Ethereum and Ripple also rebounded together.
Chinese authorities are cracking down on bitcoin mining to verify transactions and create a new digital currency, and the crackdown has extended to Sichuan province, where hydropower is being used heavily over the weekend.
The People's Bank of China has also urged financial institutions and major banks, including Alipay, not to provide services related to cryptocurrency activities.
It is said that there are not many opinions on Wall Street that the Bitcoin correction is a buying opportunity. News Street Advisors CEO Delano Saporu argues that 'now is a clear buying opportunity' and advises 'invest directly in cryptocurrencies'. He recommended BLOK ETF (Amplify Transformational Data SHaring ETF) if he decided to invest in ETFs, and selected Square, PayPal, and MicroStrategy as related stocks.
Blueline Capital CEO Bill Baruch said that the current Ethereum price has a Fibonacci Retracement ratio of 61.8% between the 2018 lows and the recent highs. He said he owns shares in Sqaure, Paypal and Nvidia.
Meanwhile, there are concerns about Tether, a stablecoin pegged to the US dollar. Tether is currently the third largest digital currency in the world with a market cap of over $60 billion.
However, it is also worrisome that tether generators do not have enough dollar reserves to justify a dollar peg. Last month, the Tether company revealed that 76% of its reserves for stablecoins are backed by cash and cash equivalents. In reality, however, only 4% of that was real money and about 65% was commercial paper.
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