• Bitcoin claws back USD 9,000 but only temporarily as bulls refuse to give up
  • The US SEC has temporarily reduced restrictions on its guidelines for Regulation Crowdfunding, making it easier for crypto firms to raise funds
  • Chinese miners believe a new wave of Bitcoin buyers are about to emerge

 

Bitcoin bulls are refusing to throw in the towel, clawing back USD 9,000 prices today and hitting a high of USD 9,112 (CoinDesk), although they ultimately gave back that ground to profit-taking activities when North America began their trading in earnest.

Although trading volume was lower yesterday than the tail end of last week, 10-day and 50-day technical indicator moving averages are only slight bearish.

As the crypto markets pick up, it looks like the crowdfunding sector has also received a boost, albeit a temporary one, from the United States Securities and Exchange Commission (SEC), who has now introduced temporary changes to its Regulation Crowdfunding offering guidelines. These changes, made because of the Covid-19 situation, will make it much easier for crypto and blockchain companies to raise money on crowd platforms like Indiegogo.

For now, this means they do not need to furnish complex documents, as lockdown prevails, or financial statements that normally apply. Of course, there are some requisite documentations that must be fully provided before firms can begin to secure investor commitments.

The SEC’s Small Business Capital Formation Advisory Committee recommended these temporary guidelines as a relief measure and these were passed yesterday unanimously by the SEC, and shall now be set in place until 31 August 2020.

Now, issuers can also launch sales as soon as they receive investor commitments, whereas previous rulings needed them to wait for 21 days after the offering statement is publicly available. They can also be allowed to raise between USD 107,000 and USD 250,000 over 12 months, using documents certified by the company’s CEO, instead of needing an accountant. SEC chairperson Jay Clayton explained:

“In the current environment, many established small businesses are facing challenges accessing urgently needed capital in a timely and cost-effective manner.”

Regulation Crowdfunding was introduced in 2015 but crypto enterprises and communities have not taken to it very well, so the limited adoption has forced to SEC to increase the annual funding limit from USD 1 million to USD 5 million, while also topping up the contribution limit for an individual investor to 10% of annual income or net wealth.

Some notable firms launching on Indiegogo include hardware wallet manufacturer Ngrave and crypto wallet HASHwallet.

Meanwhile, many Chinese miners are expecting a massive entrance of new Bitcoin buyers within the next half-year period, according to crypto firm RockX. Sharing the results of a recent poll, it said that 57% of Chinese miners from a group of 42 respondents believed this to be true.

Asian mining community respondents include F2Pool chief operating officer Yu Chao, TokenInsight partner Wayne Zhao, Pandaminer and OXBTC CEO Wilson Guo and Bitmain APAC head of sales Fan Xiaojun.

Even more respondents (71%) believed that the market had restored its confidence in Bitcoin, with some  45% of them firmly believing that Bitcoin will be trading between USD 10,000 and USD 12,000 over the next six months. A quarter believe USD 10,000 is the average price with low volatility while 14% predict a price of more than USD 15,000.

After halving, more than half (57%) say that Bitcoin hash rate actually won’t change much, and expect it to stay between 110 and 130 exahashes per day. Analytics firm BitInfoCharts puts the Bitcoin network hashrate today at 127 exahashes daily.

RockX CEO Alex Lam, in the business since 2013, said that the wet season in China means cheap electricity generated from hydroelectric dams, which means miners could profitably operate older and less efficient machines. He does say that hash rate could fall 30% a month after halving due to phasing out of older rigs in the United States, Canada and Europe.

 

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