In this issue, we cover the latest Ethereum ETFs to hit the Canadian market, Sunday’s bloody bitcoin price-action and things to look out for as central bankers conspire to issue central bank digital currencies to unsuspecting populations.
Let’s dig in.
Canada Approves Two Ethereum ETFs on The Same Day
Purpose Investments and CI Global Asset Management both received approval to launch an exchange-traded fund (ETF) in Canada that offers exposure to ether.
The approval comes only two months after Canada approved its first bitcoin ETF.
Purpose is the manager of Purpose Ether ETF, and Ether Capital Corporation is the consulting firm. The ETH will be managed in cold storage, with Gemini acting as the subsidiary custodian and CIBC Mellon Global Securities acting as an administrator.
Check out the full article here!
Bitcoin Bloody Sunday Marks $9 billion in Liquidations
BTC/USD fell to $51,200 after testing the $61,200 level multiple times, which eventually forced bitcoin to succumb to selling pressure across the board. The sell-off was exacerbated by over-exposed investors that drove prices further down, with the total number of coin liquidations reaching up to $9 billion across exchanges (a new record in crypto).
The major de-leveraging event ended the week on close above $56,200, just $300 short of what would have been a reasonably bullish close.
At the time of writing, bitcoin trades below key technical levels outside market structure (ascending wedge). As such, it appears as though momentum has shifted to an interim correction period or a neutral trading posture at best.
For months, we’ve noted the importance of bitcoin’s 20-weekly moving average as an area of strong buying pressure. In the event of continued downside, this indicator, currently occupying the $45,800 level, is a point of interest for a probable resumption of the bullish trend. The moving average also aligns with a trading block ($42,000–45–800) which flipped from resistance to confirmed support on March 1st.
On the flip side, should buying pressure resume, then conquering the 0.618 fib (and psychological) level at $60,000 would potentially sling shot bitcoin prices above $70,000.
Since bitcoin is the ultimate blue-chip which dictates crypto trends, altcoin price-action will probably follow the leader with increased comparative volatility.
Bitcoin Dominance Reaches 50%
Notably, bitcoin dominance has bounced off the 50th percentile level. In the event of a continued sell-off, it’s likely that BTC.D rebounds temporarily before potentially heading towards 40%. This scenario would not be conducive with good altcoin performance as the market retreats into the safety of bitcoin and stablecoins.
Tailwinds For Crypto
Despite the sell-off, the industry has various tailwinds which will have a long-lasting effect on price-action well into the future, including BTC and ETH ETFs launching left right and centre.
The Coinbase IPO is one such tailwind because it bridges the gap between traditional finance and crypto. The listing will now act as a standard-bearer for other exchanges to follow, both centralised and decentralised. Kraken and BlockFi could follow the leader and go public sometime this year or early 2022, bringing further exposure to the industry among traditional investors.
This exposure is particularly important in an environment which could eventually become somewhat hostile to cryptocurrency innovation due to overbearing central bankers. Since 2019 there has been a lot of talk about Central Bank Digital Currencies — the latest being the British Central Bank reiterating its exploration of ‘digital ledger technology’. While CBDC’s are inevitable, the trade-offs could make them far less appealing than what they’re made out to be, which is all the more reason for crypto to be successful beforehand.
CBDCs: a Wolf in Sheep’s Clothing?
Last week the ECB President Christine Lagarde commented on the Digital Euro in what was clearly a talking point aimed at directing the CBDC public discussion in Europe. In a public consultation on the Digital Euro, Lagarde said that respondents want privacy but are uninterested in enjoying the liberties assured by physical cash transactions — i.e. relative anonymity. It’s hard to believe that consumers could want one and not the other, and it would be incorrect to let such slippery comments go unnoticed.
Of course, the reality is that Lagarde and central bankers see the potential to take behavioural economics to a new level with this project and are therefore using all options in the rhetorical toolbox to convince Euro holders that this program is in their best interest. Unfortunately, seldom is this the case, if ever.
Still, it will be interesting to see how central bank digital currencies are pitched to the public and whether the narrative will be swallowed whole hook line and sinker by populations who now have bitcoin and cryptocurrencies as viable alternatives. Even in the likely event that bitcoin wins the war, it would be naive to think that central bankers won’t fight tooth and nail to (try) stop this industry in its tracks.
In attempting this, central bankers will have to contend with Bitcoin’s in-built game-theory, and will probably end up supporting the thing they’d like to destroy by public acclaim (if nothing else).
Bulls lead the way.
Catch you next time.
Read More: Canada Approves Two Ethereum ETFs On The Same Day
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Originally published at https://mailchi.mp.