Cryptocurrencies seemed calmer this week indicating some stability has overtaken the market for now, but a clear look in fundamental news must be undertaken in order to form an opinion for further direction.
Very popular Chinese investor Li Xiaolai who has made huge economic contribution towards investing in digital coins, is now said to be joining a Blockchain firm, Grandshores Technology group listed on the Hong Kong Stock Exchange.
Li, has an estimated net worth of around $1 billion as of October 2018, and seems to have faith in the innovative technology which backs digital coins.
When billionaires like himself are interested in the industry even after the continuing downfall we have been witnessing in the previous months, it could be an indication that hope has yet to be lost but instead remains.
On the contrary, Beijing’s Municipal Bureau of Finance, has publicly announced it opposes investing in or being part of security token offerings (STOs).
A Security Token Offering (STO) has more or less similar characteristics to a traditional business that is going public through an Initial Public Offering (IPO).
Security tokens are seen as legally binding investment contracts that give investors access to a share of the company, paying them a monthly dividend or a say in the business decision-making process.
Beijing’s Municipal Bureau of Finance chief advised people to participate in such activities only when the government has legalized them.
For the past year, the cryptocurrency industry has grown to significant levels, investments are surging and investment institutions associated are increasing.
Governments with domestic and international regulatory bodies are following the trend and trying to maintain control of this fast growing industry, which in our opinion they have failed to do, until now.
However, in the US, in the past two months, important developments have taken place and have been applied with U.S. sanctions laws by the Treasury Department’s Office of Foreign Assets Control (OFAC).
Recently, two individuals have been sanctioned by OFAC, for cyberattacks against U.S. networks.
Through a report it was said that the individuals are of Iranian origin and could be sanctioned or investigated by OFAC through their associated bitcoin addresses.
OFAC, is in our opinion a game changer for the industry considering the cyber corruption that has taken place only for 2018.
If hackers or abusers are identified all over the world and brought to justice, then reliability could be reimbursed for the Crypto world.
In addition, leaders participating in the G20 meeting repeated their intentions to regulate “cryptoassets” after a meeting in Buenos Aires.
Global leaders walked away from the recent summit with a rough game plan for crypto regulation.
The leaders specifically stated they will regulate cryptoassets for anti-money laundering but also protection against the financing of terrorism and will consider other responses as needed.
As a conclusion members also made it clear that they would investigate and enforce punishment for people responsible for stealing digital assets to regions where the misconduct took place.
This week, Bitcoin followed up with a sideways movement between are 4100 (R1) resistance level and the 3550 (S1) support level, with a somewhat indecisive direction.
If the digital coin is undertaken by a bullish sentiment we could see it surpassing the 4100 (R1) resistance level, with the next stop being the 4500 (R2) resistance barrier.
On the contrary, if a bearish sentiment follows the coin could drop towards the 3550 (S1) support level, dropping even lower for the 3000 (S2) support barrier.