Bitcoin retreating proceeded unabated last week. Bitcoin fell to as low as $24,000 last week as Tether briefly lost its peg to US dollars. The crypto major Bitcoin recorded seven straight weeks of losses for the first time in its history. Bitcoin is currently back below $30,000. A glance at the Bitcoin daily chart reveals the bearish trend continues as market recovered from oversold state. Bitcoin looks set on its way toward $20,000 as there are no support areas in near proximity to break the fall if no surprise reversal of the current trend materializes!
Crypto currencies suffered heavy liquidations last week as stablecoins tether (USDT) and terraUSD (UST) lost their dollar peg. TerraUSD, which broke its 1:1 peg to the dollar last week, is currently trading near 14 cents. USDT stablecoin slumped to as low as 96 cents despite the USDT issuer Tether`s Twitter confirming earlier Thursday that Tether was continuing to honor “USDT redemptions at 1$” via its website. And while European Union document showed EU Commission favors ban on large-scale stablecoins and US Treasury Secretary Janet Yellen highlighted again the risk crypto currencies pose to financial stability, Goldman Sachs provided financing for a crypto hedge fund.
European Union lawmakers and governments are attempting to finalize a landmark crypto law known as the Markets in Crypto Assets Regulation (MiCA). Officials seem to be in favor of measures aimed at preventing stablecoins to become widely used in place of fiat currency. In an internal document labeled as a “non-paper,” meaning it does not reflect the commission’s formal position, regulators propose ordering the issuers of any stablecoin exceeding 200 million euros (US$211 million) and 1 million transactions daily to cease issuances until these figures come back below the threshold.
US Treasury Secretary Janet Yellen reiterated official position on cryptocurrency industry threat to financial stability during testimony before a US Senate panel on Tuesday. She pointed that stablecoin runs pose risks to financial stability and “we need a framework that`s appropriate."
Goldman Sachs and Dawn Capital co-led $70 million in a funding for Elwood Technologies, the cryptocurrency company backed by billionaire fund manager Alan Howard. London-based Elwood launched its first blockchain and crypto-related products in early 2019. The Series A round also included UK bank Barclays and Commerzbank’s CommerzVentures, as well as Galaxy Digital Ventures, BlockFi Ventures, Flow Traders, Chimera Ventures and Digital Currency Group (CoinDesk’s parent company). The funding was secured against the backdrop of heavy crypto liquidations like Ether futures leading $1.2 billion in liquidations as crypto market cap dropped 16% overnight last Thursday.
