Bitcoin (BTC) and most major cryptocurrencies have entered a consolidation period and a decisive breakout or breakdown from it is now to be expected.
As the year comes to an end, the focus will shift to the major events that are expected to influence crypto prices next year. China’s launch of a digital yuan is one such event that can influence crypto prices. The People’s Bank of China’s deputy director Mu Changchun said that the digital form of yuan would not have any room to speculate on its value as it would be different from Bitcoin and stablecoins.
Though China has been against cryptocurrencies, it has been making major strides in supporting blockchain technology. The Central Bank of China has used blockchain technology to issue 20 billion Chinese yuan ($2.8 billion) of special bonds. These bonds will fund a small portion of the bank’s loan portfolio issued to small businesses.
Daily cryptocurrency market performance. Source: Coin360
The Shenzhen Stock Exchange has launched an index that will track the performance of stocks of 50 companies involved with the blockchain industry. Lu Lei, deputy head of the State Administration of Foreign Exchange said that the government “will push forward a prospective study on foreign exchange reforms to deal with cryptocurrency and explore the construction of the foreign exchange regulation and technology system under the new situation.”
While China is getting heavily involved with blockchain technology, Japanese companies are attempting to boost crypto adoption. Japanese retail giant Rakuten will allow its customers to convert their Rakuten Group loyalty points to three different cryptocurrencies, Bitcoin, Ether and Bitcoin Cash.
With the fundamentals likely to improve next year, should the investors buy at current levels or do the technicals project a deeper correction? Let’s find out.
Bitcoin (BTC) turned down from the overhead resistance…