This Week In Crypto is a weekly segment from the Live Coin Watch News team, providing readers with a fun, succinct, and pertinent summary of the most important Bitcoin-related events in the past week or two.
Bitcoin Falls Below $7,000
This week, Bitcoin rallied as high as $7,470. Unfortunately, since then the cryptocurrency has reversed, falling to $6,800 as of the time of writing this industry update.
Traders have claimed that this correction is a technical one, pointing out that there were three key resistances around $7,400: a horizontal resistance that was made when Bitcoin crashed to $7,300 in October 2019, a descending trendline, and the 50-day simple moving average for the cryptocurrency.
Despite the non-action, analysts are still bullish on BTC and the rest of the cryptocurrency market. BitMEX CEO Arthur Hayes, for instance, explained that while he could see Bitcoin revisiting $3,000, his year-end price target “remains $20,000,” which is 180% above the current price.
As to why he thinks this is the case, Hayes mentioned the monetary and fiscal solutions enacted by the world’s governments and central banks over recent weeks:
“Everyone knows the shift is upon us, that is why central bankers and politicians will throw all of their tools at this problem. And I will reiterate, that is inflationary because more fiat money will chase a flat to declining supply of real goods and labour. There are only two things to own during the transition to whatever the new system is and that is gold and bitcoin.”
Bitcoin Cash and SV See Halvings
Over the past few days, both Bitcoin Cash and Bitcoin SV — the fifth and sixth largest cryptocurrencies by market capitalization, respectively — have experienced their block reward halvings, whereas the number of coins issued per block got sliced in half.
As a result, both networks saw their hash rates and difficulty drop. The halving resulted in an instant 50% reduction in mining revenues for those operating on the BCH and BSV chain, forcing operators running on tight margins to turn off their machines or mine on other networks.
Fidelity Sees Booming Demand for Crypto
Fidelity Digital Assets — the crypto services division of Wall Street giant Fidelity Investments, a financial services firm with trillions of dollars worth of assets under management — has confirmed it has seen an uptick in interest. Speaking to Frank Chaparro of The Block, a spokeswoman for the firm said that:
“From a trading perspective, we continue to onboard new clients every month and are seeing significant pipeline growth. […] And in recent weeks, we’ve seen more momentum across our business.”
The spokeswoman cited the fact that the narrative that Bitcoin and crypto act as safe-haven assets has started to spread amongst institutional investors.
Reddit’s Crypto Initiative: Ethereum-Based Points
Reddit has purportedly launched a crypto initiative called “Community Points,” which is a new points system that is based on Ethereum ERC-20 tokens.
This was discovered by a user named “MagoCrypto,” who on Wednesday posted a video showing that on his Reddit app on his Android (Samsung), there was an integrated wallet with an Ethereum address, along with explanations of a digital coin/point system. A text from the Reddit feature Mago shared reads:
“Community points are fully controlled by the people who own them. They live on the Ethereum blockchain, which is the same technology as Bitcoin to guarantee property rights and control. Even Reddit cannot take them away.”
Although Reddit has not yet publicly announced this feature, a spokeswoman for the social media forum giant said to industry outlet Decrypt that it is “working with one community to test a feature that represents a user’s involvement in a community.”
Despite the positive news, Ethereum is trading flat on the day, according to LiveCoinWatch data.
South Korea’s Central Bank Launches Crypto Initiative
On Monday, South Korea’s central bank, the Bank of Korea, revealed that it has launched a pilot program for testing a digital won, which is slated to run to December 2021. A release outlining this move said the program will determine if there are a legal case and ample technical capability to launch a digital currency in South Korea.
This comes just six weeks after the South Korean National Assembly passed legislation that will provide a comprehensive framework for the regulation and legalization of cryptocurrencies and Bitcoin exchanges.