Bitcoin with price increase
Bitcoin starts the weekend with a jump over the important 7000 USD mark. The upward trend of the major stock indices could be the trigger for this behavior. We take a look at the most important events in crypto space.
Bitcoin breaks the 7000 USD barrier
At the time of this article, the No.1 crypto currency is at a rate of 7078 USD. With this the cops make an important statement before the weekend. For days the BTC fought against the resistance at 6800 USD, here the decision about the future price direction is made. With the latest pump, this trend line has initially been crossed, but is far from being sustainably overcome. Again and again the line failed in the past days as a support area.
Traditional markets get a boost
The major stock markets are saying goodbye to the weekend with good news. First the Down Jones Industrial climbed by a whopping 2% after positive reports on the drug Remdesivir (in connection with the coronavirus). The Dax even managed a remarkable uptrend of a respectable 3.15%. At first glance, there is much to suggest that the global economy can gradually recover from the severe setbacks of the pandemic. However, such a pattern is typical for a tangible bear market. The rising unemployment figures and the damage done so far could have consequences for decades.
Correlation between BTC and stock indices
At this stage, it looks like the correlation between traditional markets and crypto-space is increasing. With a market cap of approximately USD 203 billion, the crypto market represents a small area in the financial world. It remains to be seen whether the upcoming Bitcoin Halving will change this situation. During the BlockDown Conference 2020, Binance CEO Changpeng Zhao expressed his bullish opinion about the future of the first crypto currency as follows: “Actually, we all assumed that Bitcoin will climb up in an economic crisis. In fact, the global economic market has plunged by 5%, which has simply destroyed a lot of money “Nevertheless, CZ is still convinced that the BTC will continue its upward trend after Corona.
Binance Smart Chain is coming
The leading crypto stock exchange Binance has a potential Ethereum competitor in the starting blocks with Binance Smart Chain. Users will be able to program smart contracts on the new block chain and use a promising staking program.
The white paper highlights the following features: “The proposed Binance Smart Chain is unique for several reasons:
- it is a sovereign block chain that will provide security and protection for all users and developers
- it is EVM-compatible and will support all existing Ethereum tools and faster and cheaper transactions.
- its native dual-chain interoperability enables cross-chain communication and scaling of high-performance dApps that require a fast and smooth user experience.
- its on-chain governance with the consensus “Proof of Staked Authority”, based on 21 validators that validate transactions, will provide decentralization and enable significant community participation”.