Bitcoin price has stood up well over the weekend. After the initial buzz from a massive 25% pump dissipated, Bitcoin did proceed to breach the USD 9,000 support line, creating a low of USD 8,906, but then it has since recovered from the 10% traceback and is now trading around USD 9,480 just before London noon time 11:15 am UTC (CoinDesk).
So far, the weekend spirits are high, although consecutive days of Asian time profit taking will be a slight dampener, so we should pay attention to what happens in a few hours time in North America. If the American traders push prices higher, it would be too tempting for Asian traders not to take advantage on Monday morning. Then again, if prices dip even further, Japan and China might seeks to cut short-term losses and let go of positions to book in more modest profits.
Bitcoin price soars to $9,600 😱😱😱
— Mia Tam (@_blockandchain_) October 27, 2019
Either way, few people in crypto will be complaining, after facing down not many days ago the prospects for even lower prices. Altcoins themselves continue to profit from Bitcoin’s sudden change in fortune, with NEO being the day’s biggest winner with a 22.4% improvement from yesterday’s price to breach USD 10. Ether is now USD 184, after touching highs above USD 190 the previous day, and may take this chance to advance beyond USD 200.
Not all alts are in profit, though, with Bitcoin’s retracement also having a knock on effect for IOTA (-2.1%), XLM (-1.3%) and XEM (-0.5%).
The big news for the weekend to chew on is how China apparently has passed a new law that will regulate cryptography from 2020 onwards. According to state media channels CCTX, the Standing Committee of the 13th National People’s Congress passed the new regulatory framework on Saturday, hoping to set standards for the application of cryptography and the management of passwords.
Just in case clarity is needed, “crypto” was the original term referring to cryptography, which is the technique and philosophy securing cryptocurrencies — so it is this tech that China now wants to establish the role of a central cryptographic agency for, and not crypto like Bitcoin.
A draft copy of the law had been published earlier in May, indicating that the agency created would lead public cryptographic work, and create guidelines and policies for the sector. It read:
“The key take away is — the developing of new cryptography, hashing algo, even the usage of the tech, will be in the official legal realm. This means you need to follow the CCP standard for all ‘encrypted’ behaviors, which can be VERY broad, from mining to block propagation.”
There is speculation that this only strengthens claims and rumors of a digital yuan. Despite facing down harsh criticism of his planned crypto project, Facebook CEO Mark Zuckerberg warned that a digital yuan not unlike Libra, if successful, could topple the position of the US dollar:
“China is moving quickly to launch a similar idea in the coming months. We can’t sit here and assume that because America is today the leader that it will always get to be the leader if we don’t innovate.”
One would be wise not to focus always on the Far East, however, because while China and Japan and even South Korea continue to make waves and break ground in blockchain and crypto, other superpowers are also quicker to move than the US.
Just today, for example, the United Arab Emirates’ Securities and Commodities Authority (SCA) has proposed a draft resolution for regulating crypto assets. This news should provide clearer guidance for how crypto and blockchain projects would operate in the Middle East powerhouse.
It is a region that is comparatively restrictive, with neighbors Iraq and Kuwait exhibiting unfriendly attitudes toward Bitcoin in the past. But the UAE has always been known as a more progressive and tech-friendly nation keen to diversify from its current reliance on the oil and gas industry.
Blockchain commentator and Financial Times personality Sukhi Jutla sees this draft resolution as a clear message to the world, saying:
“They are signalling that they are open to exploring this area and by creating guidelines they are giving more reassurance, confidence, and stability to businesses owners who may want to enter this field… the UAE has been smart enough to understand that this innovation will grow in years to come and they don’t want to miss it. I wouldn’t be surprised if the UAE becomes the leading nation in this space just as they did with the oil and property space.”
Watch out, USA!
Image Courtesy: Pixabay