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The infrastructure law approved by the US Senate last Tuesday, August 10, as reported by CriptoNoticias, contains provisions that could be considered restrictive for the bitcoin industry (BTC) and cryptocurrencies.
However, the price of BTC at the time of writing this article is USD 47,130 according to the Calculator of this information portal, which implies an appreciation of 7.6% compared to the price of last Monday, August 9. From the local minimum of USD 29,000, reached on July 20, the recovery has been 58%.
The infrastructure law promoted through a bipartisan agreement, which will consider the profits obtained in operations with cryptocurrencies for tax purposes, must be passed by the U.S. House of Representatives to become final law. At the moment, the market has not reacted negatively to the approval of this legislation by the Senate.
Bitcoin breaks $ 46,000 and the golden cross takes shape
The dominant uptrend over the past seven days led to the breakout of the $ 46,000 resistance. This level was exceeded on Monday, August 9, and resumed on Friday, the 13th, after three daily red candles. The remarkable thing about this rally is that it would make the fourth consecutive week of the bitcoin price rise.
On the other hand, some analysts warned earlier this week that a pattern associated with an upward movement was about to occur. Last Tuesday, analysts at @RektCapital announced that it was about to occur the pattern known as the golden cross, which was commented on by this means. Indeed, this Saturday the 14th there was such a pattern, in which the 50-day moving average crosses the 200-day moving average in an upward movement. The above graph, posted on Twitter this Saturday, confirms the announced crossover.
Featured chart of the week
Institutional adoption has been the main momentum of the current bitcoin cycle. While announcements from companies such as MicroStrategy and Square, as well as individual pronouncements from recognized investors, occurred last year, institutional initiatives around bitcoin had been occurring since at least 2013.
This week’s chart reflects institutional investment in bitcoin since 2013, with corporations including bitcoin as a treasury reserve, although the Bitcoin ETF (exchange traded funds) approved in Canada and other countries. According to this graph, ETFs represent more than 680,000 BTC, while corporations hoard more than 180,000 BTC.
It is striking that the total BTC reflected in this compilation is less than that contemplated by bitcointreasuries.org. This site includes a category of «Countries», with 260,000 BTC, which is not considered in the presented graph.
US banks still interested in bitcoin
According to Coinbase’s latest quarterly report, reviewed by CriptoNoticias, PNC Bank is among the traditional financial institutions that are exploring offer cryptocurrency-based products in association with said exchange. Coinbase referred to its focus on institutional investment in bitcoin, noting that it has more than 9,000 institutions as clients.
On the other hand, in the report for the second quarter of 2021, Coinbase reflected that, for the first time, the trading volume of bitcoin, 24% of the total volume, fell below the trading volume of Ethereum. The latter reached 26% of the total, as reported in this medium. Compared to the second quarter of 2020, the traded volume of BTC grew 670% at the end of June this year, while ETH volume increased 1,382% in one year.
Not only do BTC leave the exchanges
On several occasions, the decrease in bitcoin inventories from exchanges has been highlighted as a bullish signal.
Taking into account that the returns of Ethereum (ETH) have surpassed those of bitcoin in this bull cycle, it is pertinent to note that ETH inventories on centralized exchanges have reached a minimum value, from 9.4% of the supply, or about 11 million ETH, as reported by CriptoNoticias. The price of ETH, which surpassed $ 3,000 again on Saturday, August 7, is trading at the time of writing at $ 3,328.