Market
Bitcoin Pharaoh Remains Jailed and More
BeInCrypto comprehensive Latam Crypto Roundup brings Latin America’s most important news and trends. With reporters in Brazil, Mexico, Argentina, and more, we cover the latest updates and insights from the region’s crypto scene.
This week’s roundup includes stories about Brazil’s Bitcoin Pharaoh, Botev Plovdiv FC’s move to El Salvador to issue tokenized shares, and more.
El Salvador and Russia Strengthen Economic Cooperation: Bitcoin Could Be on the Agenda
El Salvador and Russia unveiled plans for closer economic collaboration at the St. Petersburg International Economic Forum. Salvadoran Vice President Felix Ulloa proposed enhancing trade relations and establishing mutual embassies, potentially reshaping both nations’ economies.
Russia, facing sanctions from the US and the EU since its 2022 invasion of Ukraine, seeks new trade allies. Under President Nayib Bukele, El Salvador has cooled relations with the US while strengthening ties with China.
Geopolitically, an alliance with Russia could enhance El Salvador’s global standing, reducing its dependence on the United States and solidifying relations with emerging powers like China and Russia. Economically, El Salvador aims to balance its trade deficit with Russia, highlighted by Ulloa’s mention of a $16 million import from Russia in 2021 with no corresponding exports.
Read more: Top 3 Methods for Cross-Border Money Transfer Using Crypto
Technologically, El Salvador aspires to become a hub of innovation. Collaborations with Russian tech firms could support this ambition. Notably, Bitcoin’s role is crucial in this potential partnership. As the first country to adopt Bitcoin as legal tender, El Salvador’s digital asset laws and possibly creating a Bitcoin bank could facilitate trade with Russia, bypassing traditional fiat currencies controlled by central banks.
This economic cooperation could redefine El Salvador’s position on the global stage, offering new opportunities in trade, technology, and digital finance.
Brazilian ‘Pharaoh of Bitcoins’ to Remain in Prison After Supreme Court Ruling
The Federal Supreme Court (STF) upheld the imprisonment of Glaidson Acácio dos Santos, known as the “Pharaoh of Bitcoins,” on June 11. Santos, accused of running a cryptocurrency scam through Gas Consultoria, was arrested in 2021 during the Federal Police’s Operation Kryptos.
Santos’ defense requested habeas corpus, seeking to convert his imprisonment to house arrest due to alleged psychiatric issues and questioning the Federal Court’s jurisdiction. However, Justice Gilmar Mendes rejected the request. He acknowledged that pyramid schemes typically fall under state jurisdiction but noted that federal courts can intervene when cases involve crimes connected to the National Financial System.
Santos faces multiple charges, including financial pyramiding, fraudulent management, irregular securities issuance, unauthorized operations, and criminal organization. His scheme promised victims monthly returns of 10% on crypto-asset investments.
This decision follows the recent arrest of Cláudio Barbosa, another “Pharaoh of Bitcoins,” for running a pyramid scheme through Trust Investing. On the run since 2022, Barbosa allegedly caused a loss of R$4.1 billion to investors from over 80 countries.
Read more: 15 Most Common Crypto Scams To Look Out For
Bulgarian Soccer Club Botev Plovdiv to Issue Tokenized Shares in El Salvador
Bulgarian soccer club Botev Plovdiv FC has announced plans to transfer its cryptocurrency operations to El Salvador through Bitfinex Securities. The club adopted Bitcoin as a payment method in October 2023. It moved its operations to benefit from El Salvador’s tax incentives and favorable business environment, aiming to access new capital markets.
George Manolov, the club’s Bitcoin strategy leader, revealed that Botev Plovdiv established a financial entity in El Salvador to issue tokenized shares. This initiative allows investors to become co-owners of the club.
Read more: What is Tokenization on Blockchain?
“We want Bitcoin to be the main long-term financial strategy for our business. I am here because we want to do a token issuance from El Salvador to accumulate BTC, but also to allow our fans to be part of the process to become a recognized European club. We are working with Bitfinex Securities to democratize the shares, and the investment ticket will be very low. Anyone can become a co-owner,” Manolov explained.
Manolov discussed this new business model at a Bulgarian presentation and will share it at the BTC Prague forum. He explained that tokenization would enable efficient storage, transfer, and management of assets on Bitfinex Securities via the Liquid Network, a Bitcoin sidechain.
Brazil’s Largest Private Bank Expands Access to Bitcoin and Ethereum
Itaú Unibanco, Brazil’s largest private bank, has expanded its cryptocurrency offerings, allowing customers to trade Bitcoin and Ethereum through its digital platform, Íon. With assets exceeding R$2.7 trillion, the bank aims to make access to these top cryptocurrencies more straightforward and secure.
The initiative began gradually at the end of 2023, receiving positive client feedback. In internal surveys, over 90% of users rated their experience as good or great. With a minimum contribution of R$10, all active users on the Íon platform can now trade cryptocurrencies.
“We are very happy with the cryptoassets journey we are building with our customers. Opening trading to all Íon users reflects not only the evolution of our product but also of the entire market,” said Guto Antunes, head of Itaú Digital Assets. He stressed Itaú’s commitment to offering intuitive and secure crypto trading.
Itaú also aims to educate clients about the crypto market, ensuring they make informed investment decisions. This move aligns Itaú with other Brazilian institutions like BTG Pactual and Nubank, which already offer cryptocurrency exposure to their clients.
Read more: Crypto vs. Banking: Which Is a Smarter Choice?
El Salvador Overcame IMF Observations and Reaffirms Bitcoin Agenda
El Salvador’s Vice President Félix Ullóa has reaffirmed the country’s commitment to Bitcoin, aiming for economic liberation from central banks. Since enacting the Law of Digital Assets last year, the nation has embraced various tokens and cryptocurrencies.
Ullóa highlighted El Salvador’s pioneering role in admitting Bitcoin in exchange-traded funds (ETFs) ahead of the US He expressed confidence that Bitcoin could reach $100,000 by the end of 2024.
Despite initial criticism from the International Monetary Fund (IMF) and rating agencies, El Salvador has diversified its financing sources beyond traditional multilateral organizations. This strategy has bolstered the country’s credibility and attracted digital economy companies through a supportive regulatory framework.
Read more: Who Owns the Most Bitcoin in 2024?
El Salvador recently marked three years since adopting Bitcoin as a legal tender. The country has been purchasing one Bitcoin daily, accumulating up to 30 BTC monthly. These investments have yielded over $67 million in unrealized profits.
Notable investors like Cathie Wood, CEO of ARK Invest, believe President Bukele’s Bitcoin strategy could significantly boost the nation’s GDP over the next five years. Ullóa acknowledged that the IMF continues to monitor the Bitcoin Law, highlighting ongoing discussions about the associated risks and benefits.
As the Latin American crypto scene grows, these stories highlight the region’s increasing influence in the global market. From El Salvador’s Bitcoin plans to Brazilian banks’ crypto trading launch, LATAM is positioning itself as a key player in the tech world. Stay tuned for more updates and insights in next week’s roundup.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
Cardano (ADA) Reaches Local Top, Poised to Decline Further
During the intraday trading session on July 4, Cardano’s (ADA) Age Consumed metric rose to a 35-day high, suggesting that previously dormant tokens have begun to change hands.
This surge has since been followed by a decline in the altcoin’s price, signaling that a local top has been reached.
Cardano Long-Term Holders Are on the Move
On July 4, 1.32 billion ADA coins worth approximately $433 million at current market prices were moved, as indicated by the spike in its Age Consumed metric.
An asset’s Age Consumed metric tracks the movement of its dormant coins. The metric offers insight into the behavioral shifts of an asset’s long-term holders. This cohort of coin holders rarely moves their dormant coins around. Therefore, it is noteworthy when they do because it often precedes a shift in market trends.
The Age Consumed Metric can be a marker of a price bottom. This occurs when a spike in the metric’s value is followed by an asset’s price rally.
Read More: How To Buy Cardano (ADA) and Everything You Need To Know
Conversely, it is also an indicator of a price top. This occurs when the metric spikes and the asset’s price falls. A price top refers to an asset’s highest price before a sustained decline.
At press time, ADA trades at $0.32. Its value has declined by 17% in the past 24 hours. For context, the altcoin traded at $0.39 when its Age Consumed surged. This price level represents its local top.
ADA’s daily trading volume has surged by 23% during the same period. This creates a bearish divergence between the coin’s price and trading volume, hinting at the possibility of a continued price decline.
In the past 24 hours, ADA’s daily trading volume has totaled $707 million.
ADA Price Prediction: The Current Downtrend is Strong
ADA has been on a downtrend since the beginning of July. At its current price, the altcoin trades at a low last seen in November 2023.
ADA’s Aroon Down Line is 100%, confirming the strength of the current downtrend. This indicator measures an asset’s trend strength and identifies potential trend reversal points. When its Down Line is close to 100%, the downtrend is strong, and the most recent low was reached relatively recently.
If the bearish bias towards the altcoin continues to gain momentum, ADA’s value may dip to $0.31.
Read More: Cardano (ADA) Price Prediction 2024/2025/2030
However, if buying pressure spikes, it may push the coin’s price to $0.34.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
US Job Market Sees Growth in June as Crypto Market Slumps
The US Bureau of Labor Statistics reported Friday that employers added 206,000 jobs in June. The unemployment rate rose slightly to 4.1%, above the estimated 4.0%, while average hourly earnings remained at 0.3% monthly.
Although this suggests that the US job market continues to experience healthy growth, there has been a muted response in crypto markets.
New Jobs Created Beats Analysts Estimate
According to the Bureau of Labor Statistics, the US economy added 206,000 jobs in June. While this represented a 6% decline from the 218,000 jobs added in May, it exceeded analysts’ forecasts of around 190,000 new positions.
During that month, unemployment rose slightly to 4.1%, a 2% hike from the projected 4.0%. Steadying at 4%, June’s unemployment rate suggested that the number of unemployed people as a percentage of the labor force remained stable.
Further, average hourly earnings increased by 0.3% in June, matching forecasts. This reflects steady, albeit slow, wage growth for US workers.
Crypto Markets Fail to React
While the report suggests the US job market continues to experience positive momentum, the cryptocurrency market has failed to react. Still declining as of this writing, the global cryptocurrency market capitalization has dropped by 6% in the past 24 hours.
The value of the leading crypto asset, Bitcoin (BTC), has plummeted by 3% during that period. At press time, BTC trades at $55,249.
Its price movements, assessed on an hourly chart, confirm the decline in trading activity despite the positive outlook offered by the Nonfarm Payrolls report.
As of this writing, the coin’s Relative Strength Index (RSI) is 40.76, resting below the 50-neutral zone. This indicator measures the asset’s overbought and oversold market conditions. At 42.49, BTC’s RSI shows that selling pressure currently dwarfs buying activity.
If this trend continues, the coin’s price may plummet further to exchange hands at $54,553.
Read more: Bitcoin Price Prediction 2024/2025/2030
However, if sentiment shifts from bearish to bullish, the coin’s price may rally to $55,427.
Disclaimer
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Market
BNB Drops Below $500, Extended Bearish Trend On The Horizon?
BNB has recently fallen below the critical $500 support mark, signaling the continuation of a bearish trend. This decline reflects increased selling pressure and growing bearish sentiment within the cryptocurrency market.
As BNB slips under this significant threshold, analysts and traders are closely watching for further downward movement, potentially targeting lower support levels. The breach of the $500 mark is a key indicator of ongoing market weakness, suggesting that BNB may face continued challenges in the near term.
With the help of technical indicators to provide comprehensive insights into potential future movements, key support levels to watch, and strategies for investors and traders to navigate the ongoing downturn, this article explores the bearish sentiment surrounding BNB’s price.
At the time of writing, BNB’s price was down by over 10%, trading at about $471, with a market valuation of more than $69 billion and a trading volume of more than $2 billion. In the last 24 hours, the market capitalization of BNB has dropped by 10.88%, while trading volume has increased by 37.43%.
Technical Indicators Highlight Sustained Bearish Market Conditions
The price of BNB on the 4-hour chart is actively bearish trading below the 100-day Simple Moving Average (SMA). As of the time of writing, the price has made a huge drop below the $500 support mark which has triggered more bearishness for the crypto asset.
With the formation of the 4-hour Moving Average Convergence Divergence (MACD), the price of BNB is set to face further decline as the MACD histograms are trending below the zero line with strong momentum. Also, the MACD line and signal line have sharply dropped and are trending below the zero line with a good spread.
On the 1-day chart, it can be observed that BNB is trading below the 100-day SMA and is attempting to drop the third bearish candlestick in a row with strong momentum. This development suggests that the price is still actively bearish and may continue to decline.
Lastly, the 1-day MACD signals a potential further decline in the price of BNB since the MACD histograms are trending below the zero line with strong momentum. Both the MACD line and the MACD signal line are also observed to be trending below zero after a cross below it.
What To Watch Next For BNB
Current analysis reveals that the price of BNB could be heading toward the $357 support level. If BNB’s price reaches the $357 support level and breaks below, it may continue to drop to test the $202 support level and potentially move on to challenge other lower levels if it breaches the $202 level.
However, should the crypto asset encounter a rejection at the $357 support level, it will begin to move upward toward the $500 level once again. If it moves above this level, it may continue to climb to test the $635 resistance level and potentially move on to test other higher levels if it breaches the $635 resistance level.
Featured image from Adobe Stock, chart from Tradingview.com
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