{"id":302388,"date":"2021-07-19T11:51:10","date_gmt":"2021-07-19T08:51:10","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/fed-takes-on-stablecoins-5-things-to-watch-in-bitcoin-this-week\/"},"modified":"2021-07-19T11:51:10","modified_gmt":"2021-07-19T08:51:10","slug":"fed-takes-on-stablecoins-5-things-to-watch-in-bitcoin-this-week","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/fed-takes-on-stablecoins-5-things-to-watch-in-bitcoin-this-week\/","title":{"rendered":"# Fed takes on stablecoins: 5 things to watch in Bitcoin this week"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3db855194a1\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3db855194a1\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/fed-takes-on-stablecoins-5-things-to-watch-in-bitcoin-this-week\/#Dollar_sees_strength_as_stocks_calm_advance\" >Dollar sees strength as stocks calm advance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/fed-takes-on-stablecoins-5-things-to-watch-in-bitcoin-this-week\/#Weekly_candle_raises_risk_of_29000_drop\" >Weekly candle raises risk of $29,000 drop<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/fed-takes-on-stablecoins-5-things-to-watch-in-bitcoin-this-week\/#Difficulty_beats_expectations\" >Difficulty beats expectations<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/fed-takes-on-stablecoins-5-things-to-watch-in-bitcoin-this-week\/#Funding_rates_stay_cool\" >Funding rates stay cool<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/fed-takes-on-stablecoins-5-things-to-watch-in-bitcoin-this-week\/#Infamous_Bitfinex_shorts_%E2%80%9Cunwind%E2%80%9D\" >Infamous Bitfinex shorts &#8220;unwind&#8221;<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Fed takes on stablecoins: 5 things to watch in Bitcoin this week <\/strong>&#8221;<\/p>\n<div class=\"post-content\" data-v-128018ef>Bitcoin (BTC) emerges into a new week with middling price action and optimistic fundamentals \u2014 what could the coming days have in store?<\/p>\n<p>Still holding $30,000 support, there\u2019s little about Bitcoin to truly excite traders, but volatility has already reminded them of its presence over the past week.<\/p>\n<p>As a recovery in mining continues, everyone is playing a <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/game\/\" data-internallinksmanager029f6b8e52c=\"7\" title=\"Game\" target=\"_blank\" rel=\"noopener\">game<\/a> of \u201cwait and see\u201d when it comes to the 2021 Bitcoin bull market.<\/p>\n<p>Cointelegraph takes a look at five things that might give BTC price action some direction in the short term.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Dollar_sees_strength_as_stocks_calm_advance\"><\/span>Dollar sees strength as stocks calm advance<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>It\u2019s a classic summer picture in equities \u2014 a slight comedown last week followed all but constant gains, with caution coming from Covid-19, inflation and other triggers.<\/p>\n<p>This time of year, however, is renowned for its lack of action, and even recent changes amount to little on a wider scale. <\/p>\n<p>\u201cThe Covid backdrop is just one of several factors that may be adversely impacting the reflation trade,\u201d Lori Calvasina, head of U.S. equity strategy at RBC Capital Markets, wrote in a note <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-07-18\/asia-stocks-seen-down-oil-in-focus-on-opec-deal-markets-wrap\">quoted<\/a> by Bloomberg.<\/p>\n<p>The U.S. dollar gained some strength from the modest shake-up in stocks, with the U.S. dollar currency index (DXY) climbing toward 93.<\/p>\n<p>As Cointelegraph reported, DXY\u2019s inverse correlation to Bitcoin remains in the spotlight for some \u2014 a short-term peak for the index may correspond to price pressure for BTC\/USD. <\/p>\n<p>Another focus is oil on the back of a lessening of tensions among OPEC+ members and a fresh agreement to boost output. While traditionally less impactful on Bitcoin behavior, any unexpected volatility can provide fuel for a low-volume cryptocurrency market.<\/p>\n<p>This was witnessed last week, as reports of Bank of America greenlighting Bitcoin futures trading for select clients swiftly sent BTC\/USD $1,000 higher.<\/p>\n<p>Actions by another bank, namely the U.S. Federal Reserve, may be more important this week. A working group on stablecoins will get the attention of Treasury Secretary Janet Yellen when it is <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-07-16\/yellen-to-convene-u-s-regulators-to-discuss-stablecoin-rules\">convened<\/a> with the goal of &#8220;intra-agency work.&#8221;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Weekly_candle_raises_risk_of_29000_drop\"><\/span>Weekly candle raises risk of $29,000 drop<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>On spot markets, Monday began with hope for the future rather than confidence in current price events.<\/p>\n<p>The weekend saw seesawing from BTC\/USD, still unable to beat resistance at $32,000 or higher but likewise apt to avoid tests of $31,000 support.<\/p>\n<p>At the time of writing, $31,750 formed a focus on lower timeframes, with ranging firmly the defining feature of the hourly chart.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-07\/15f4d1a2-3fff-42e4-82af-985492909ae6.png\"><figcaption style=\"text-align: center;\"><em>BTC\/USD 1-hour candle chart (Bitstamp). Source: TradingView<\/em><\/figcaption><\/figure>\n<p>\u201cIt&#8217;s time for a green week for Bitcoin,\u201d popular trader Micha\u00ebl van de Poppe <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/CryptoMichNL\/status\/1416999410492452865\">ventured<\/a>.<\/p>\n<p>Talk of if and when a Bitcoin price bottom could occur remains a major talking point. As Cointelegraph noted on Sunday, the drawdown from the most recent all-time high of $64,500 has now lasted for three months \u2014 the second-longest ever within a bull cycle.<\/p>\n<p>With popular opinion favoring a return below $30,000, Van de Poppe argued that a bottom may not be as dramatic as expectations demand.<\/p>\n<p>\u201cA bottom usually doesn&#8217;t look great, as the majority of the people are expecting further downwards movements of the markets,\u201d he <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/CryptoMichNL\/status\/1417012432816455682\">told<\/a> <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> followers. <\/p>\n<blockquote><p>\u201cA bad weekly candle doesn&#8217;t have to mean prices are going to fall further.\u201d<\/p><\/blockquote>\n<p>That candle did indeed dis<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>oint, with Sunday\u2019s weekly close on BTC\/USD being its lowest of 2021 so far.<\/p>\n<p>For trader and analyst Rekt Capital, an ability to reclaim $32,000 is a problem in itself, opening up the path to levels around $29,000.<\/p>\n<p>\u201cBitcoin is threatening to lose its Weekly support (~$32000). Today is the last day for $BTC to reclaim this support,\u201d he <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/rektcapital\/status\/1416693517896884225\">warned<\/a> Sunday alongside an accompanying chart. <\/p>\n<blockquote><p>\u201cLose it and there is little higher timeframe support to stop BTC from another revisit of the green area.\u201d<\/p><\/blockquote>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-07\/709361bd-cd08-49d6-b9ef-53f0b78d65ca.png\"><figcaption style=\"text-align: center;\"><em>BTC\/USD scenario with support and resistance zones. Source: Rekt Capital\/ Twitter<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Difficulty_beats_expectations\"><\/span>Difficulty beats expectations<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In contrast to price, Bitcoin\u2019s network fundamentals continue their march back to strength after the unprecedented events of May and June.<\/p>\n<p>The network\u00a0<a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/miningpoolstats.stream\/bitcoin\">hash rate<\/a>, still holding up above its local low of 83 exahashes per second (EH\/s), has not seen any further major setbacks as miners relocate away from China.<\/p>\n<p>The real signs of progress, however, come from difficulty.<\/p>\n<p>This weekend\u2019s <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/btc.com\/stats\/diff\">automated readjustment<\/a> saw difficulty dip by a modest 4.8% \u2014 a pleasing contrast from prior estimates. Two weeks beforehand, difficulty was forecast to decrease more than ever \u2014 by almost 29% \u2014 which slowly improved through the two-week difficulty cycle.<\/p>\n<p>Now, Bitcoin is on track to have its first positive readjustment since before the May price crash.<\/p>\n<p>The changes speak to Bitcoin\u2019s unflinching ability to monitor itself and incentivize miners back to the network while continuing to process transactions unhindered.<\/p>\n<p>As such, commentators believe that the worst of the recent upheaval is firmly in the past.<\/p>\n<p>\u201cThe hangover of a difficulty adjustment downwards from the China crackdowns should conclude after this adjustment,\u201d Kevin Zhang, vice-president of Digital Currency Group mining advisory subsidiary Foundry Services, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/SinoCrypto\/status\/1416466931276730371\">said<\/a> at the weekend. <\/p>\n<blockquote><p>\u201cExpecting to see the hashrate and difficulty to slowly recover from here.\u201d<\/p><\/blockquote>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-07\/8f59e5bc-5338-4809-bed0-552f3e8f1e4a.png\"><figcaption style=\"text-align: center;\"><em>Bitcoin difficulty chart. Source: Blockchain<\/em><\/figcaption><\/figure>\n<p>Meanwhile, both hash rate and difficulty have dipped below their levels at the May 2020 block subsidy halving.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Funding_rates_stay_cool\"><\/span>Funding rates stay cool<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>On-chain indicators are anything but bearish, but it\u2019s the sustained nuanced signals, which are on the radar this week.<\/p>\n<p>Specifically, <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bybt.com\/FundingRate\">funding rates<\/a> across exchanges have remained neutral or lightly negative throughout the recent price volatility \u2014 a hopeful insight into traders\u2019 mindset.<\/p>\n<p>As Cointelegraph reported, large whales appear alone in being apt to sell at current levels, with other investor profiles conversely buying up the supply.<\/p>\n<p>In terms of volume, however, a $30,000 Bitcoin is predictably uninteresting. Both futures and PayPal volumes have decreased significantly, the former returning to levels from late last year. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-07\/40ddd65b-319c-4835-8355-cd3667b886aa.jpg\"><figcaption style=\"text-align: center;\"><em>Crypto futures open interest and volume chart. Source: Bybt<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Infamous_Bitfinex_shorts_%E2%80%9Cunwind%E2%80%9D\"><\/span>Infamous Bitfinex shorts &#8220;unwind&#8221;<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The weekend\u2019s price action was accompanied by fluctuating bets among large-volume investors. <\/p>\n<p>Short positions on Bitfinex, a driver of short-term volatility as witnessed throughout the past weeks, ebbed and flowed.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">What I&#8217;m watching:<\/p>\n<p>Shorts unwinding since July 15th.<\/p>\n<p>Probably nothing. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw\">#Bitcoin<\/a> &#8230; get some. <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/GLWVeoab6y\">pic.twitter.com\/GLWVeoab6y<\/a><\/p>\n<p>\u2014 Dr. Jeff Ross (@VailshireCap) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/VailshireCap\/status\/1416822777978359810?ref_src=twsrc%5Etfw\">July 18, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>On Monday, shorts were decreasing further, as the market waited for cues over <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a> direction.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2021-07\/4a6b4ea0-fcc3-4561-b2f3-5296eb409cf6.png\"><figcaption style=\"text-align: center;\"><em>BTC\/USD shorts 1-day candle chart (Bitfinex). Source: TradingView<\/em><\/figcaption><\/figure>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/fed-takes-on-stablecoins-5-things-to-watch-in-bitcoin-this-week\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Fed takes on stablecoins: 5 things to watch in Bitcoin this week &#8221; Bitcoin (BTC) emerges into a new week with middling price action and optimistic fundamentals \u2014 what could the coming days have in store? Still holding $30,000 support, there\u2019s little about Bitcoin to truly excite traders, but volatility has already reminded them&#8230;<\/p>\n","protected":false},"author":1,"featured_media":302389,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjEtMDcvYWYxNTIzNmYtYTM1Yy00ZTE3LThhN2MtZTRlNWRlMTc1OWM4LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74862,74937,75022,75493,73785],"class_list":["post-302388","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bitcoin","tag-bitcoin-price","tag-central-bank","tag-stablecoin","tag-markets"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/302388","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=302388"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/302388\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/302389"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=302388"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=302388"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=302388"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}