Cryptocurrency Market News: Bitcoin and crypto bullish cycle impends as governments pad economies

Here is what you need to know on Wednesday, May 27, 2020

Markets:

The majority of cryptocurrencies are experiencing choppy markets. There has been a minor retracement in the total market capitalization from $250 million on Tuesday to $248 billion at the time of writing. Bitcoin still takes the chunk of the market share, standing at 65.5% ($162 billion) of the total market cap. Recently, the largest stablecoin in the market, Tether (USDT) rose to the third position with a market cap of $8.7 billion displacing Ripple (XRP).

BTC/USD is teetering at $8,860, a price level that has remained relatively unchanged in the last 24 hours. Bitcoin has been able to trade an intraday high of $8,893 while on the downside, $8,812.74 (intraday low) put a stop to the losses on Wednesday. As we usher in the European session, a stronger bearish trend is building. The shrinking volatility signals that downward price movements could remain limited.

ETH/USD is gradually turning bullish after a seller dominated Asian session. The price is trading 0.44% higher on the day from $200.99 (opening value) to the prevailing, $201.87. The intraday high at $202.44 is the first resistance that must be broken for more upward movement towards the stubborn resistance at $205. For now, sustaining Ethereum above $200 support is key to the possible gains above $210 based on a technical breakout and increased volume.

Read also: Ethereum Price Analysis: ETH/BTC pair bounces off channel support as Bitcoin weakens

XRP/USD is also slightly in the green following a 0.50% gain on the day. The resistance at $0.20 is still in place with XRP only being able to reach $0.1951 (intraday high). On the downside, $0.19 is the short term support above other major support areas at $0.18 and $0.1750.

On a wider scope, some of the top 100 coins defying the bearish wave across the market are Ontology (up 3.79%), Ox (up 3.50%), Ravecoin (up 4.80%), Matic Network (up 21.74%), Ren (up 7.60%), Quant o(up 7.78%), SOLVE (up 9.57%) and Maid SafeCoin (up 9.08%).

Chart of the day: ETH/BTC 4-hour

Market:

According to the CEO of Digital Assets Data, Mike Alfred, the cryptocurrency landscape is looking positive and poised for a bull-run. Alfred says that the mitigations that have been taken to cushion the economy against a potential crash due to the Coronavirus pandemic coupled with the ever-growing cryptocurrency infrastructure, “could help drive this cycle.” Alfred explains:

The confluence of factors that could help drive this cycle include unprecedented recent interventions by fiscal and monetary authorities around the globe and rapidly improving trading, lending, and custodial infrastructure.

Moreover, many people and institutions from the traditional markets are getting involved in cryptocurrency. Alfred reckons that “I’ve had literally 20 friends from outside the industry reach out to me in the last month because they’re interested in getting involved.”

Industry:

Facebook Inc. has announced that it is going to rebrand its Calibra digital wallet to Novi. The move is aimed at making sending funds around the world easy. Novi will give users the ability to send money on both Facebook Messenger and WhatsApp. There will also be a stand-alone wallet that will serve the same purpose.

Changes have also been made in regard to leadership as David Marcus, who served as the head of Calibra and the Libra Association becomes the head of Novi. Novi Financial is the new subsidiary set to operate independently from Facebook. It will be headquartered in Menlo Park, California. Marcus said in a statement:

The first product Novi Financial will introduce is the Novi digital wallet designed for Libra, a new payment system which is built on innovative blockchain technology.

Regulation:

The Reserve Bank of India (RBI) has issued a response to a request filed by Harish BV, the co-founder of Unocoin cryptocurrency exchange in regard to commercial banks in the country still denying services to crypto businesses. The Supreme Court of India recalled the directive issued by the RSI in 2018 barring all commercial banks from supporting crypto-related businesses. The RSI in its statement denied the allegations saying “as, on date, no such prohibition exists.” As long as bank services to cryptocurrency businesses are restricted, operations become difficult due to hindrances in collecting deposits and withdrawals.