GREEN AND CLEAN BITCOIN ARE OPENING NEW MARKETS ON OTC

One bitcoin is one bitcoin, exchangeable for another in a fully fungible manner on global exchanges that operate 24/7, 365 days a year. But in Over the Counter (OTC) markets, there are different flavors of bitcoin with the oldest one being ‘clean’ BTC.

That conceptually arose when the US government auctioned 144,000 bitcoin in 2014 and 2015 after seizing them from the Silk Road market.

The suggestion was that since these bitcoins came from the government, there are no concerns of them having been used for illicit activity, and thus in theory demand for them should be higher than for other coins.

 “On the buyer side, ‘clean’ coins are particularly popular,” says Florian Doehnert-Breyer, Managing Partner at the Berlin based F5 Crypto Capital, before adding:

“This refers to cryptocurrency units that have not previously been used for dubious transactions and, in the best case, come directly from a Coinbase transaction.

Some crypto desks have a forensic department that checks to what extent the said crypto currency units have already attracted negative attention in the crypto ecosystem.

The cleanest coins are those that come straight from the miners and have just been recreated. A surcharge is often required on these cryptocurrency units.”

This idea is now being extended to green coins. An institutional fund that has requirements to invest in carbon neutral assets, for example, can source the coins in OTC markets from a miner that uses only renewable energy.

If that creates extra demand, then in OTC markets there may well be a higher price for cleanly mined coins than either coins for which the energy mix can not be traced or coins which did not utilize renewable energy.

One River Asset Management is trying to take this concept in a different direction by applying for an ETF which uses the MVIS One River Carbon Neutral Bitcoin Index that they describe as “constructed using bitcoin price feeds from eligible bitcoin spot markets with adjustments to reflect the current spot price of carbon credits necessary to offset the estimated carbon footprint attributable to each bitcoin.”

In effect this seems to take a somewhat crude approach and a very generalized one where there is no real distinction between green and non green coins, all instead seemingly discounted presumably based on a general formula of something like estimates of global bitcoin network non-renewable energy usage minus carbon credits to offset it.

It may nonetheless meet the requirements of some institutional funds, but there are bitcoin miners that only use renewable energy with DGHI for example stating they’re 90% carbon neutral. There are others at 97% or even higher.

Such coins would have two premium markets merged into one as they are clean in coming directly from miners, and green in using renewable energy, with an ETF potentially buildable upon that.

 But the big question is whether otherwise anyone cares about either clean or green once you move to sell it on. Obviously in regards to clean, no one would want an illicit asset, but there isn’t any distinction on exchanges because they handle that aspect before any coin is available to buy or sell, making it the exchange’s problem.

 In regards to green, theoretically there could be a specialized market if there’s sufficient demand from institutional funds, but that’s only because they’re limited by their mandates.

It’s not clear the wider market which is not so restricted necessarily cares with the focus more on encouraging all miners to use renewable energy or nowadays even to contribute towards saving the environment by utilizing flared gas for energy, taking out tons and tons of methane that otherwise would have gone into the atmosphere.

Any such green coin therefore would probably be more a temporary method to allow institutional funds restricted by their mandates to participate in the bitcoin market, with OTC desks generally happy to meet any requirement usually for a premium as extra work would be needed.

So whether clean or green or ESG, there’s always specialized markets OTC happy to provide, with there being as good as no barriers for anyone that wants to participate in the crypto market as long as they have sufficient funds....

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BITCOIN REMAINS AT RISK‚ WHY BTC COULD NOSEDIVE BELOW $38‚000

Bitcoin price struggled to recover above $40,000 and extended its decline against the US Dollar. BTC could dive below $38,500 if it continues to stay below $40,000.

Bitcoin extended its decline below the $40,000 and $39,200 support levels.
The price is now trading well below $40,000 and the 100 hourly simple moving average.
There is a major bearish trend line forming with resistance near $39,250 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair must break $39,250 and $40,000 to start a fresh increase in the near term.

Bitcoin Price is Struggling

Bitcoin price started a fresh decline from well above $42,000 level. BTC broke the key $40,500 support level to move into a short-term bearish zone.

The price even settled below the $40,000 level and the 100 hourly simple moving average. It even broke the $39,200 support zone and traded as low as $38,711. The price is now consolidating gains above the $38,700 level.

An initial resistance is near the $39,250 level. There is also a major bearish trend line forming with resistance near $39,250 on the hourly chart of the BTC/USD pair. The first major resistance is near the $39,600 level. It is close to the 23.6% Fib retracement level of the recent decline from the $42,630 swing high to $38,711 low.

The main resistance is now forming near the $40,500 level and the 100 hourly simple moving average. It is near the 50% Fib retracement level of the recent decline from the $42,630 swing high to $38,711 low.

If there is an upside break above the trend line and then $40,000, bitcoin could rise towards $40,500. The next major resistance on the upside is near the $41,200 zone.

More Losses in BTC?

If bitcoin fails to climb above the $39,250 and $40,500 resistance levels, it could continue to move down. An initial support on the downside is near the $38,700 level.

The first major support is now near the $38,500 zone. A clear downside break below the $38,500 support might encourage the bears for more losses. The next major support is near the $37,000 zone.

Technical indicators:

Hourly MACD – The MACD is now gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 50 level.
Major Support Levels – $38,500, followed by $37,000.
Major Resistance Levels – $39,250, $40,000 and $40,500....

11 SOUTH KOREAN EXCHANGES CLOSING AMID REGULATOR PROBE

A number of middleweight cryptocurrency exchanges in South Korea will close their doors as the country’s financial regulator launches an inspection into suspected illegal activities.

South Korea’s Financial Services Commission (FSC) will reportedly close a total of 11 local exchanges. All of which have used fraudulent accounts, according to reports.

Authorities and reports had not disclosed the suspected exchanges at time of press. However, reports indicate that the exchanges in question will be unable to gain approval from the FSC for operation in future.

The FSC’s probe comes on the heels of recent closures of South Korean crypto exchanges. Darlbit, for one, reportedly went out of business following a suspension of withdrawal and deposit services.

Meanwhile, BitSonic announced a temporary cessation of operations while it renews its service systems. Amid the renewal, the exchange also said it would acquire an information security management system (ISMS). A set of procedures reportedly required for exchanges to run legally in South Korea.

Abiding by regulations

However, the FSC’s investigation does not apply to the front-runner exchanges in the country. According to reports, the probe did not affect Upbit or Bithumb, two of South Korea’s biggest exchanges. This was due to the fact that both exchanges offer real-name account registration to their customers. Such registration has been mandatory in South Korea for anti-fraud and money laundering reasons since 2018.

Last month, Bithumb also enforced a ban on its employees investing in or trading in crypto. The company announced its new policy on July 2. It was not only made in line with some of the FSC’s recent decisions to restrict the South Korean crypto market, but also in a bid to strengthen internal regulations.

Reports also indicate that Bithumb would implement a system involving continuous self-audits and internal reporting.

South Korea’s crypto crackdown

More recently, the South Korean authorities have turned their attentions to tax evasion within the crypto space. Reports recently revealed that the government were considering amending tax codes to allow financial authorities to confiscate the crypto holdings of any suspected tax evaders. Officials in South Korea seized $47 million worth of crypto due to unpaid taxes back in June.

Local exchanges in South Korea are not the only ones facing the regulators’ clampdown. All foreign exchanges must register themselves with the Korea Financial Intelligence Unit (KFIU) by September 24. Failing to do so will reportedly open them up to legal action and potential closure....

ETHEREUM PRICE LEAPS TO $2‚600 AHEAD OF THE LONDON HARD FORK

Ethereum price gains traction during the weekend, trading above $2,600.
The much-awaited Ethereum London hard fork upgrade is expected to kick off on August 4.
Ethereum must settle above $2,600 to avert a potential retreat to $2,400.

Ethereum price gained abandoned the bearish calls to $2,000 late last week and posted incredible gains over the weekend. The pioneer smart contract token had initially been capped under $2,400. However, its downside had also been protected by an ascending channel’s lower boundary. This line of support put Ethereum in the trajectory for gains above $2,400.

The bullish leg extended above $2,600 and briefly touched $2,700 on some exchanges like Coinbase. A minor correction came into play with Ethereum slicing under the ascending channel’s middle boundary.

At the time of writing, Ether is trading at $2,560 amid a renewed effort by the bulls to fight for another take on the seller congestion at $2,600 and $2,700.

Ethereum Price Upswing to $3,000 Seems Imminent

It is the bulls’ priority to establish higher support for Ethereum as soon as possible. Perhaps holding above $2,500 will keep the focus on $2,600 and $2,700, respectively. Note that another break past $2,600 may trigger more buy orders as Ethereum soars to $2,700 before making hast toward $3,000.

From a fundamental perspective, Ethereum is at an optimum point to rally. Investor sentiment keeps improving ahead of the Ethereum London hard fork. This key upgrade encompasses the EIP-1559, a proposal that will see network gas fees significantly brought down. In a way, the prevailing exploitative gas fees have made Ether less competitive. However, with the barrier out of the way, Ethereum can rise to higher levels.

On the flip side, holding above $2,500 is crucial for continuing the uptrend to $3,000. However, if broken, bears will gain momentum and push the price to $$2,400. Massive losses will be triggered if sellers surmount the bulls’ at this level. Other support areas to keep in mind include $2,200 and $2,000....

BITCOIN CORRECTS GAINS‚ WHY BTC MUST COULD EXTEND LOSSES

Bitcoin price started a downside correction from the $42,600 zone against the US Dollar. BTC is now trading below $40,000 and it might extend losses towards $38,500.

Bitcoin started a downside correction below the $41,200 and $40,000 support levels.
The price is now trading below $40,000 and the 100 hourly simple moving average.
There is a key bearish trend line forming with resistance near $40,500 on the hourly chart of the BTC/USD pair (data feed from Kraken).
The pair is likely to continue lower towards the $38,500 support zone in the near term.

Bitcoin Price Back Below $40K

Bitcoin price extended its increase above the $42,000 resistance level. BTC even climbed above the $42,500 resistance level and settled above the 100 hourly simple moving average.

However, the price struggled above the $42,600 level. A high was formed near $42,629 before the price started a downside correction. There was a break below the $41,200 and $40,500 support levels. It even broke the $40,000 support level and the 100 hourly simple moving average.

A low is formed near $39,281 and the price is now consolidating. An immediate resistance on the upside is near the $40,000 level. It is near the 23.6% Fib retracement level of the downward move from the $42,629 swing high to $39,281 low.

The first major resistance is near the $40,500 level and the 100 hourly simple moving average. There is also a key bearish trend line forming with resistance near $40,500 on the hourly chart of the BTC/USD pair.
The trend line is close to the 50% Fib retracement level of the downward move from the $42,629 swing high to $39,281 low. If there is an upside break above the trend line, bitcoin could rise towards $41,200. The next major resistance on the upside is near the $42,000 zone.

More Losses in BTC?

If bitcoin fails to climb above the $40,000 and $40,500 resistance levels, it could continue to move down. An initial support on the downside is near the $39,200 level.

The first major support is now near the $38,500 zone. A clear downside break below the $38,500 support might call for more losses. The next major support is near the $37,000 zone.

Technical indicators:

Hourly MACD – The MACD is slowly gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 30 level.
Major Support Levels – $38,500, followed by $37,000.
Major Resistance Levels – $40,000, $40,500 and $42,000....